SPRING 2015

NEWSLETTER AGENT CONTACT INFORMATION

MATT CHADWICK ● (270)227-8731 ● matthew.chadwick@uky.edu

Important message for H-2a employers More and more farmers are creating separate entities, such as LLCs and Partnerships through which they employ H-2a workers. It is this new entity that applies for the H-2a workers. During the Department of Labor and Homeland Security H-2a certification process, these federal agencies check for tax returns in the name of the applicants (either the farmer or the separate entity whoever is applying for the H-2a workers). These new entities, whether they are a partnership or an LLC MUST file a tax return. Some of these entities are not doing this. If this tax return is not filed, they will very likely be denied their application for H-2a workers. And yes, it is a requirement that Partnership and LLC’s file a tax return. Applications are already being denied because of this issue. Similarly, some farms are applying for H-2a workers under a “DBA” (or Doing Business As). They are running into the same problem… if there is no tax return filed under the name of the H-2a applicant, then the application will very likely be denied. We also continue to remind our H-2a employers and employees that H-2a workers MUST get a social security number after they arrive in the U. S. In general, H-2a workers are not subject to federal income tax withholding and are exempt from FICA taxes. However, if the H-2a worker does not get a social security number, then the employer MUST withhold 28% for federal tax withholding from their gross wages. Although H-2a workers are exempt from federal tax withholding, they are not exempt from paying income taxes. They must file tax returns each year. Failure to do so could prevent their future ability to work under the H-2a Visa. Source: Laura Powers, laura.powers@uky.edu

Dates to Remember:

4/11 Backyard Chicken Workshop,

(Calloway County Fairgrounds)

4/18 Farmer’s Market GAP & Sampling Cer-

tificate Training (Calloway County Ext.

Office)

5/12 UK Wheat Field Day (UKREC, Prince-

ton, KY)

5/16 KDA Sheep and Goat Tag-in (MSU

Beef Unit)

6/9-15 Calloway County Fair

6/25 UK Horticulture open house (UKREC,

Princeton, KY)

6/25 Tobacco, Beef and More Field day

(Highland Rim, Springfield, TN.)

7/16 Taste of Extension (Stahler’s Dairy)

7/23 Kentucky Farm Succession Seminar:

Building the Bridge to Your Farm's Fu-

ture (RiverPark Center, Owensboro,

KY)

7/30 UK Corn-Soybean-Tobacco Field Day

(UKREC, Princeton, KY)

8/20-30 Kentucky State Fair (Louisville, KY)

Agriculture and Natural Resources

COOPERATIVE EXTENSION SERVICE ● UNIVERSITY OF KENTUCKY ● COLLEGE OF AGRICULTURE ● LEXINGTON, KY 40546

Calloway County 310 South Fourth St. Murray, KY 42071 (270) 753-1452 Fax: (270)759-4243 www.ca.uky.edu/ces

Missed the Tobacco GAP training? This year we will be offering make-up GAP train-ings for Tobacco producers that were unable to attend a scheduled meeting. The trainings will be offered in our office, please call us at (270)753-1452 to schedule a time.

Challenges in Weed Management in Wheat Due to Wet Conditions The large amount of snow cover, combined with recent rainfall, has made it a challenge to treat for weeds as we transition into spring. The following are some suggestions to consider as we progress through the next few days: Harmony and Harmony Extra are examples of ALS-inhibitor herbicides that can injure wheat under cool, wet

soil conditions. Injury may also occur if wide fluctuations of day and nighttime temperatures occur prior to, or soon after, application. It is not clear to what extent, if any, the injury observed with Harmony and Harmony Extra impacts wheat yield. The labels of these products recommend adding 2,4-D as a tank mix partner to limit the risk of injuring wheat from the ALS-inhibitor herbicides. It is important to recognize that the safest time to use 2,4-D in wheat is when plants are fully tillered and prior to jointing.

Any significant delay in applications due to wet conditions may allow time for wheat to grow beyond the labeled growth stage. Dicamba is especially of concern when applied to wheat that is jointing or is later in growth.

The delay in applying wheat herbicides this spring increases the demand to use the same sprayer for applying early preplant treatments for corn. Clean sprayers thoroughly before switching to the other crops. If changing from corn to wheat, be aware that small amounts of glyphosate, Valor, or atrazine left in the tank may lead to crop injury when subsequent treatments are applied to wheat. Do not leave spray mixes in the tank or lines overnight.

Controlling ALS-resistant common chickweed that overwintered may be a challenge. Growers will not have the option of using Harmony Extra for managing populations resistant to this chemistry. Starane Ulta, Huskie, and metribuzin have some activity on common chickweed. One concern with metribuzin is the risk of crop injury due to susceptibility of wheat varieties. This may be particularly true when using high rates of metribuzin.

The delay in applications may force growers to topdress nitrogen fertilizer and spray herbicides close to the same time. Such herbicides as Osprey and PowerFlex have potential to injure wheat when applied near the time of topdressing nitrogen. The PowerFlex label cautions against making applications within 7 days of topdressing ammonium nitrogen fertilizer, while the Osprey label suggests waiting 14 days between application and topdressing. Axial is an alternative to Osprey or PowerFlex in managing Italian ryegrass and avoiding wheat injury when applied near the time of topdressing nitrogen.

Source: James R. Martin, Extension Professor

Beef Herd Expansion Appears to be Underway USDA released their annual cattle inventory estimates in late January. This report was especially significant this year as many were looking for confirmation that beef herd expansion had begun. Overall, the report indicated that expansion was underway, and perhaps at a faster pace than many expected. Also, the report confirmed that the cow herd was larger coming into 2015, likely as a result of decreased cow slaughter during 2014. Total cattle and calves were estimated to be up by about 1% from 2014. The number that will likely have the most immediate impact on beef producers is the estimated size of the beef cow herd. The January 2015 estimate was just under 29.7 million, which was an increase of a little more than 2% from 2014. Sizeable increases were seen in Texas, Oklahoma and Kansas. Increases in herd size in the southeast were more moderate for the most part. Cow slaughter had been running well below year ago levels for virtually all of 2014, and I think this was the primary driver of the increase in cow numbers. Deep culling in much of the US during 2011-2013 resulted in beef producers coming into 2014 with a younger cow herd. The combination of a younger herd, favorable weather, and attractive calf prices likely resulted in producers simply culling fewer cows in 2014. The impact will be a larger calf crop being marketed in the US for 2015, which will have an impact on calf prices this fall. The other number that has gotten a lot of attention was a 4% increase in the number of heifers held for beef cow replacement. Heifer retention was also slightly above year ago levels last year, but by a smaller percentage. Further, I felt that some of the increase in heifer retention last year was partially in response to deceasing cow numbers. Conversely, the heifer retention seen this year occurred when total beef cow numbers had actually increased. To put this 4% in perspective, it amounts to an additional 226,000 more heifers being held for beef cow replacements. As a percentage of the 29.7 million US beef cow herd, this would be slightly less than 1%. Heifer development estimates for July will also be of importance as we start thinking about how quickly this cow-herd will grow. While I do look for fall calf prices to be softer in fall 2015, I fully expect the fall 2015 market to be another strong one, second only to the fall of 2014. Cow-calf operators should take advantage of the increased income they enjoyed in 2014, and are likely to enjoy in 2015, to get their beef herds where they want them to be in the next few years.

Source Kenny Burdine, UK Extension Professor, Ag Economics.

Trying to Make Sense Out of an Abruptly Changing Burley Tobacco Market

As burley contracts began rolling out over the past two weeks it became obvious that 2015 will be a challenging

year for burley tobacco growers. While it appears that contract prices offered by most buyers will be similar to

2014 price schedules (with a few companies reducing prices for mid to lower stalk leaf), U.S. burley contract

volume will be reduced significantly. Unlike during the days of the former federal tobacco program when quota

changes were uniform across all growers, contract volume changes for 2015 will vary considerably across U.S.

burley growers. In reality, 2015 contract volume changes range from small increases for a few growers, to 100%

reduction for other growers with differences within a given company generally based on historical “scorecard”

variables such as delivery percentages and quality factors. Some companies are extending contracts almost

exclusively to their multi-year contract growers, resulting in the elimination or sharp reduction in contract

volume for single year contract growers while others did offer “across the board” cuts to all contract growers. In

lieu of these abrupt changes, what will the change in U.S. burley acres be for this year? The USDA Planting

Intentions report will be released on March 31st, but keep in mind that these survey results are based on grower

expectations as of late February and early March – prior to the roll-out of tobacco contracts. Given that grower

expectations for 2015 burley contract volume were likely higher several weeks ago, I anticipate USDA burley

planting intentions for 2015 to be inflated relative to actual contract volume and actual plantings. Based on

what I am hearing from various individual companies and other buying interests (i.e. cooperatives), I could

anticipate the call for a 30 to 40% or greater reduction in 2015 U.S. burley acres. What can be made of these

abrupt changes after the buying sector was so aggressive in purchasing leaf in the 2013 marketing season and

relatively strong prices for 2014 contracted tobacco? Perhaps some of the adjustments can be explained by

several of the following factors.

A global surplus of burley has rapidly materialized over the past 18 months as world burley production has

increased by more than 30%, while global burley consumption has declined

Export demand is extremely weak amidst an abundance of cheaper foreign leaf and an increase in the value

of the U.S. dollar making U.S. tobacco more expensive in international markets

Some buyers overcommitted in purchasing the 2014 U.S. burley crop as demand expectations did not

materialize and thus will have to make additional adjustments in 2015 to correct for this imbalance

The loss in Malawian burley production from recent flooding during the growing season was not as

devastating as initially reported

Current and forecast sales of American blended cigarette sales continue to fall globally

Tobacco companies realize U.S. growers will overproduce above contract volumes which provides an

opportunity to purchase lower priced leaf in the U.S. and globally

Tobacco companies continue to tighten burley inventories amidst a very uncertain domestic and global

regulatory environment along with a small, but rapidly emerging non-combustible (i.e., ecig, vaping)

market

An excess supply situation provides an opportunity for companies to eliminate lower quality growers or

those who have not followed through with their previous contract obligations.

The U.S. burley growing industry has experienced drastic volume reductions in the past, followed by some

stability and even some periods of growth. Perhaps this will occur in the near future, but no one can make this

statement with a lot of confidence in today’s marketing environment. While the market is demanding less

burley today, such drastic contraction of the industry within a single year possibly jeopardizes future U.S.

burley leaf supply security for buyers if the market eventually rebounds and the overall grass-root political

support for the industry. The remaining growers will need to realize that an excess supply market likely results

in more critical grading for the 2015 crop and that non-contract tobacco production will be extremely risky.

With anticipated tighter margins, growers will have to place an even greater emphasis on quality, labor

efficiency and yield to have a favorable outcome for the 2015 crop.

Source: Will Snell , UK Extension Economist, wsnell@uky.edu

KyFarmStart KyFarmStart received 3 years of continued funded through the USDA-NIFA Beginning Farmer Rancher Program. This intensive education program is targeting those individuals who have ten years or less farming experience. The program is designed as a whole farm management education program for beginning farmers, providing a basic foundation of production, marketing, management, and networking which are necessary for beginning farmers to succeed in today’s dynamic agriculture environment. KyFarmStart is designed as one year education program. Producers will participate in a series of 12 face to face education programs, including nine traditional county extension meetings and three on-farm demonstrations/farm field day experiences. Additionally, some of the curriculum will be made available as an on-line course to provide all producers the opportunity to learn additional information that may not have been thought in their class. The purchase region Ag agents are working together to create a KyFarmStart program that is tailored to the producers in our end of the state. This program is designed for producers who are transitioning into management roles on the farm, even if you have been working on the farm for longer than 10 years. If you are interested in participating please call me so that we can discuss your particular farm’s operations. –(270) 227-8731, Matt Chadwick, Calloway County Ext. Office

BROOD XXIII Due In West Kentucky

Brood XXIII of the periodical cicada is due to emerge along the Mississippi River Valley. In Kentucky, the

bulk of this 13-year brood should occur west of I-65; the insects should be most abundant in counties along

the river. Prior to emergence, cicada nymphs living in very wet soil may build mud chimneys similar to

those made by crawdads . The chimneys allow the nymphs to move to drier air in order to molt, while also

remaining protected from predators and desiccation. Nymphs can begin to leave the ground in late March

to find vertical surfaces to cling to while molting to the adult stage. Soon after emergence, the cicadas will

accumulate in the tree tops and begin their rhythmic chorusing that may continue into early June. Egg

laying is the real danger from periodical cicadas, so their emergence is the signal to begin watching to

determine if plant protection will be needed. A week or so after emergence females are ready to lay eggs.

Periodical cicadas feed little, but in large numbers, they can be very destructive. Physical injury occurs

when females slit the bark on pencil-sized twigs and lay their eggs inside the wounds. They prefer

grapevines, oak, hickory, apple, peach, and pear trees about the diameter of a little finger; however, they

are not limited to those species. The damage causes “flagging” due to broken twigs that die and turn

brown. Young trees may be severely misshaped from leader or branch breaks. More mature trees and

shrubs usually survive even dense emergences of cicadas and continue to grow during subsequent years.

This can be difficult to believe in the month or so following a large emergence because branch terminals of

many deciduous trees will turn brown due to injury. Cicada nymphs spend years feeding on sap taken from

the roots of trees and shrubs. Over time, large numbers of them can take a toll. During the first few years,

there usually are no apparent signs. However, the nymphs grow and gradually take increasing volumes of

sap as they feed. During the last few years of their development, this can affect tree and shrub growth and

vigor, and production of fruit trees. The impacts are subtle and probably would be noticeable if there were

nearby uninfected trees. Source: Dr. Lee Townsend, UK Extension Entomologist

Newsletter assembled by,

Matt Chadwick

Calloway County Extension Agent

Ag and Natural Resources