Grains of Knowledge

2010 Ingham County Fair

 

Earlier this month, we spent a day at the Ingham County Fair in Michigan with Tracy Ostrander from the David Chapman Agency. Tracy spent the week at the fairgrounds working to building a relationship with the farming and agriculture community in the area. The exhibit showcased Westfield as a farm insurance provider.

Tracy and the agency's presence with their booth at the fair drew some attention to the agency, and will hopefully continue to spur some name recognition as an agricultural insurance provider in the area. In conversations with fair growers, there were several individuals who had questions about their insurance we were able to assist with and generate some client opportunities for the agency.

What a great way to get involved in the community and generate some awareness of agricultural insurance!  If you are an independent agent and would like our assistance with promoting your agency within your local agricultural community, please contact your underwriter to learn how we can hep!

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Guest Author: Bethany Haynes is an agribusiness underwriter who currently works with farm and commercial agribusiness accounts from our home office in Westfield Center, Ohio. Her background in the dairy industry and passion for agriculture guides her to assist our Westfield Agents and Customers to find insurance solutions.

Summertime and Family Farm Days

Earlier this summer, a group of Agribusiness Field Managers and Underwriters from our Lancaster, Pennsylvania office volunteered their time at an annual event sponsored by a local business.  The event, Farm Family Days, http://oregondairy.com/familyfarmdays.asp, draws a crowd of over 12,000 each year with the fun activities including pony rides, barrel rides (driven by a garden tractor), a straw tunnel, tractor rides and some informational and fun sessions to learn more about agriculture.  Also, yummy food and treats are readily available.

I asked each of our staff members what they enjoyed most about the event and why they volunteered their time.  Here is what they said:

• To meet new people
• Share discussions about agriculture
• Give back to the community
• Drive a tractor
• Wagon rides
• Educate children about farm life

How do you get involved in your community events?  Tell us your stories!

 
 Source: Oregon Dairy
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Stacey is a region leader for the small/specialty segment of Westfield's Agribusiness Division which is based out of Westfield Center, Ohio, the corporate headquarters of Westfield Insurance.

Tweeting in a Twub via Twitter - @WestfieldAg gathers for #AgChat!

 
Last evening, various members of our AgriBusiness Division gathered to discuss hot topics in agriculture via a Twitter discussion group (also known as a "twub") called #AgChat.  Not only did the group include underwriters and Division leadership, but we were also joined by a Westfield Agent, Marc Clinard from AVI Risk Management and Insurance Brokers in Farmington, NM.

We participated in the discussion with the @WestfieldAg Twitter handle, but also had members of our group participating with their personal user names and even had members of our business unit joining in the discussion from home across various states!   Last night's moderated discussion touched on farmer's markets, their vendors and customers and also vetted thoughts on community supported agriculture.  According to Scott Orndorff, our National Leader of Specialty Markets, "It's amazing to observe the diversity of opinions shared during the conversation."

The purpose of us attending as a group was to help staff gain a greater comfort level with social media and specifically to explore the many ways that we can utilize Twitter to build a deeper knowledge of specific segments and issues within agriculture.  We also believe this is another avenue for us to develop stronger relationships with our agency partners as well as current and prospective customers who are also using the tool.

When asked about her thoughts on the evening, underwriter Bethany Haynes shared, "#AgChat is something I've wanted to participate in for some time now, but was never able to find the time.  After we were organized in a fun group environment, I will feel more comfortable joining the discussion in the future when the time suits my schedule and I look forward to following future topics that may be discussed."  Lee Kolenich, another underwriter agreed that the evening was enjoyable and she liked "meeting other #AgChat participants on line and reading views and questions from all over the country!"

All in all, the event was a success and we're looking forward to finding more opportunities to engage in social and professional networking.  Please feel free to share comments below on how and why you use social media to support your busines!

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Kristin is a farm and commercial agribusiness underwriter with the Western Region of Westfield’s AgriBusiness Division. She is located at the company’s headquarters in Westfield Center, Ohio and holds an underwriting responsibility for the states of Illinois and Iowa.  Kristin’s love of agriculture is strongly tied to her experience growing up on her family’s registered Jersey farm in north-central Ohio. .

Everything is Just Peachy for South Carolina Growers

 
^{Image: Water Tower Gaffney, SC}

^{Source: Walter G. Acre via Flickr} 

When we think of the peach, most people immediately imagine biting into a juicy, succulent Georgia peach. The production of this delicious fruit has given the entire state its claim to fame as the “peach state”. Think about all of the public references to a Georgia peach: the Georgia license plate has a peach logo; the rock ‘n’ roll band Lynyrd Skynyrd has a song titled “Georgia Peaches”; the former baseball player Ty Cobb, who played in Detroit Michigan, was nicknamed “the Georgia Peach”; and the list goes on and on.

While Georgia growers may have the most famous fruit, neighboring South Carolina peach farmers are proving to be quite the competitors in delivering volume and taste for consumers of this sweet treat. Year after year, South Carolina growers lead the peach production in this neighboring state rivalry. In fact, the state of South Carolina is second only to California for being the largest producer of peaches.

This year has been business as usual for South Carolina growers who are experiencing an exceptional harvest. Although this year's harvest is a smaller fruit, the South Carolina peaches are plentiful and the sweetest in years. Even though they don’t have the widespread advertising that a license plate logo supplies, the chance to win a Grammy award or a shot at The World Series title, the South Carolina peach growers are enjoying all the success they need.

To learn more about the South Carolina peach visit:

http://www.scpeach.com

There once was a cow that ate chips...

So what do Angus cattle and snack foods have in common?  More than you can imagine!  Earlier this week our team had the opportunity to attend an educational tour of a snack food manufacturer in Nottingham, PA and discovered the connection!

The Herr Food Company was founded in 1946 by James S Herr and continues to be run and managed by his family.  Most of the waste generated by the manufacturing facility is used for their nearby Herr Angus Farm.  Any product that does not meet quality standards is used for cattle feed as well as water discharge used for irrigation and potato skins for fodder.

Here are some less known potato facts:

• Green marks on chips means the potato was grown too close to the surface and was hit by sunlight. The green is equivalent to a sunburn. 
• Brown marks on chips comes from a higher sugar content in the potato. The sugar caramelizes when the chip is cooked. 
• Dehydrated potatoes are used for onion rings, and an onion powder gives them the "onion ring" flavor.
• At Herr's, starch from the potatoes is sold to a local paper manufacturing company.
• They are supplied with potatoes from Florida to Maine and many states in between.
• One potato equals 17 chips (thin), 15 kettle chips (thicker) or 13 of the 1853 Herr chips (thickest).

What was the best part of the visit, you ask?  Tasting thin and crispy chips off the assembly line that were warm and salty.  Yum!  We all walked away with a new appreciation for the art of the potato chip.  Those are some lucky Angus cows, too.

Knee High by the 4th of July?

This past 4th of July weekend, I was blessed to spend some quality time with my grandparents.  My Grandpa Schirm was was born in the late 1920's and I'm always fascinated by his stories of growing up on his family's central Ohio grain and dairy farm and this particular weekend was no exception!  As we sat on the porch sipping iced tea and watching the yearling heifers who were grazing in the pasture, someone made mention of how tall the corn has grown over the last few weeks as we've had our fair share of heat and rain.  As we were having this conversation on July 3rd, we joked that this year's crop was definitely going to be taller than knee high by the 4th of July.  As the conversation continued, my grandpa helped me understand where the phrase came from and while the explanation is pretty simple, I found it quite interesting!  Not only have we seen major advances with the development of hybrid seed, impressive planting technology and GPS guidance, but what really has pushed our corn higher than knee high by the 4th of July is that in the ole' days, farmers didn't plant their corn until mid-May, which naturally wasn't knee high until 6 to 8 weeks later or during the 4th of July holiday!

The photo above was taken later that afternoon as I was attempting to document how tall the corn actually was on the 4th of July (and I should mention that this field was planted on April 10th, well before corn was planted in the early 20th century).  As I learned from my grandfather, corn was planted later in the year for a few reasons: good hybrid seed corn which could withstand an unusually late frost wasn't available; scientific research of corn wasn't well developed until the 40's or 50's and it wasn't until that point that farmers were educated on best practices; and possibly most influential, farmers were still planting with horses or a small tractor and two-row planter, both of which took considerable time to get a field completed, so naturally planting was a much larger chore than it is today.  Grandpa Schirm also shared his experiences with using his father's check row planter and discussed some of it's pros and cons.  Using this implement helped farmers to plant their corn in straight rows resembling a checker board, which allowed for cross cultivation when the plants were young to keep the fields free of weeds as herbicides weren't yet developed.  On the other hand, up to half of the total time to plant a field was attributed to setting up the equipment and the check line, which had to be moved by hand for each row! 

Grandpa also shared how he eventually became a member of the 100 Bushel Corn Club in his hometown of Canal Winchester, Ohio where he and other members competed to produce the highest yields - eventually most of those in his group had reached the 200 bushel mark!  Through this club, he and others learned how to care for their land in ways that helped them to become better stewards of the land.  While things certainly have changed in agriculture since my grandfather was an active farmer, it's important for us to thank him and those like him for making a contribution for the betterment of agriculture! 

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Author, Kristin Taylor is a farm and commercial agribusiness underwriter with the Western Region of Westfield’s AgriBusiness Division. She is located at the company’s headquarters in Westfield Center, Ohio and holds underwriting responsibility for the states of Illinois and Iowa.

She is a graduate of Ashland University, where she received a Bachelor of Arts in communications, specializing in English and journalism.

Kristin’s love of agriculture is strongly tied to her experience growing up on her family’s registered Jersey farm in north-central Ohio. Her posts focus on the dairy industry perspectives and Westfield’s rich history in farming and agribusiness insurance.

 

Day in the Life of Risk Control

Last month I had the pleasure of spending time with one of our senior risk control field representatives, Brian Musser, who has the very important job of providing safety, service and security to our customers, agents and employees.

Spending time in a bio-hazard suit and the smell of poultry buildings brings out the best in anyone, so I choose to interview my partner for the day.  I was pleased and wanted to share his story with others.

Question:  Tell me about your job and what you do all day?

Answer:  My role with Westfield working in risk control is to help the team write quality risk, reduce losses, improve employee work place safety, save lives from farm machinery hazards and workplace hazards, provide safety service to our customers for farms and/or commercial risks, identify safety hazards on farms and commercial risks, electrical, heating, construction, etc.   I conduct collapse inspections of roof truss areas on large livestock confinement buildings like hog, poultry and dairy complex's. Farmers will call me and I will come out to the farm to survey a new livestock building under construction to see if electrical, heat, construction and roof trusses meet our safety & collapse guidelines and local building codes.  I take pride in knowing if I helped save a person's life and improved workplace safety.

Question:  What do you enjoy most about your job?

Answer:  What I love most about my job is to help our customers operate a safe work place either on a farm or a commercial business such as a concrete contractor. Most important to me is really #1 to help save a life or injury to workers on farms or commercial risks.

Question:  What do you want people to know about your job?

Answer:  What I want customers to know about my role is I am here to help them anyway possible by providing them safety surveys and provide them with safety resources and information to help them operate a more profitable business and reduce work place injuries, prevent death of workers and loss of property.

Question:  Please share a fond memory.

Answer:  My most memorable farm experience was spending good times with my grandfather feeding cattle, hogs and planting / harvesting corn. I have learned a lot about farming from my grandfather who lived to 94 years old, the hardest working man I knew!

Thank you Brian and all the members of our Risk Control team for all the hard work done every day!

Cow manure - powering a computer near you?

Researchers at Hewlett Packard recently released a research paper that outlines the design for a computer data center to run primarily on energy generated from digested farm waste. HP researchers used a hypothetical 10,000 cow dairy farm could power a 1 MW data center.  The relationship between Dairy Farm and HP Data Center creates a Farm Waste Data Center Ecosystem. 

 

Source: Flickr

 

Over the past year, we have seen greater interest in many potential on-farm power generation projects, including anaerobic digestion.  We have insured these systems for several years, but they were primarily used for generating power primarily used on the farm.  With the availability of various government incentives, there has been greater interest in constructing methane digesters on hog and dairy farms for power generation.  This potential model from HP has created an entirely new opportunity for agriculture. 

 

The alignment of livestock agriculture and a technology firm may seem like a stretch, but the HP researchers describe the potential benefits to both the farm operation and the data center provider.  In order to lower operating costs, most data centers are co-locate power generation equipment and resources to cool the computer equipment.  Partnering a dairy farm with a data center, provides the ideal situation with a co-located power generation source and cooling resource.   The methane digester would supply the power and heat from the data center can be further used in the anaerobic digestion process. 

 

A copy of the research paper, Design of Farm Waste-Driven Supply Side Infrastructure for Data Centers, and other supporting information can be found on the Hewlett-Packard website.  The researchers concluded the paper by indicating that a future financial analysis will be completed.   On the surface, a technology company and a dairy farm seem like unlikely partners.   What a development if we can see this type of relationship develop between technology and agriculture. 

 

As with any major project, methane digesters and other alternative energy exposures increase your overall risk.  Although this technology as been developed for some time, the number of projects in the U.S. continues to grow.  Westfield has partnered with various firms to increase our understanding of the exposures created by these operations and we can share this insight with our agents and insureds.  If you are considering a methane digester project or any other major expansion, please discuss with your agent and insurance carrier.  The initial input can be valuable to your long term success.   

 

Craig Welsh is the Agribusiness Division Leader at Westfield Insurance.  You can connect with Craig on Twitter @cdwelsh and on Linked In @ Craig Welsh

Spontaneous Combustion of Hay Stacks

 
Source: Flickr 

As I made the trek into work this morning, I couldn't help but notice the neatly raked windrows of freshly mown hay as I attempted to see through the raindrops on my windshield.  My mind naturally drifted to the fact that although the weather forecast was calling for mostly cloudy skies today, it looks like rain for the weekend - while my family should luck out this time around as we're making second cutting haylage today (which can withstand a higher moisture content), others in our area are likely to be baling and could be setting themselves up for a possible hay fire if not careful. 

The necessary precautions are well documented to mitigate spontaneous combustion of baled hay, however we can all probably think of a friend or neighbor whose recently baled hay has either smoldered or caught fire.  Hopefully, these incidences didn't escalate into a barn going up in flames, loss of equipment or livestock or even worse death of a loved one, but I thought it was worthwhile to offer this blog post as a reminder as we're currently dealing with wet conditions.

Not only does baling hay at moisture levels increase it's chances for spontaneous combustion, but it also increases the potential for molds and reduces the overall quality of the forage.  For additional information on how the quality can be compromised, check out this article by Lester R Vough of University of Maryland titled Causes and Prevention of Spontaneous Combustion in Hay.

After baling, you should regularly check the temperature of your stacks and use the following guidelines:

• 150 Degrees F is the beginning of the danger zone - after this point check temperature daily
• 160 Degrees F is dangerous - Measure temperature every four hours and visually inspect the stack
• 175 Degrees F is when you should call the fire department. While waiting for their arrival, spray the hay with water and remove it from the barn or dismantle the stack away from buildings and other dry hay
• 185 Degrees F is when hot spots and pockets should be inspected in the stack.  Flames will likely develop when heating hay comes into contact with the air (pockets may have already burnt our under the hay's surface - do not attempt to walk across the top of the pile, it could collapse)
• 212 Degrees F is critical! Temperatures rise rapidly above this point and the hay will almost certainly ignite

The temperature guidelines came from William Woodward of Washington State University, to learn more check out this article titled Spontaneous Combustion in Hay Stacks.

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Article written by Kristin Taylor who is a farm and commercial agribusiness underwriter with the Western Region of Westfield’s AgriBusiness Division. She is located at the company’s headquarters in Westfield Center, Ohio and holds an underwriting responsibility for the states of Illinois and Iowa.

She is a graduate of Ashland University, where she received a Bachelor of Arts in communications, specializing in English and journalism.

Kristin’s love of agriculture is strongly tied to her experience growing up on her family’s registered Jersey farm in north-central Ohio. Her posts focus on the dairy industry perspectives and Westfield’s rich history in farming and agribusiness insurance.

Farm Succession Planning

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Earlier this year, I attended a Farm Succession Planning seminar offered by Braintree Business Development Center and the Ohio Employee Ownership Center where I learned some of the foundations regarding estate planning. 

A basic succession plan should include goals of the owner and other key groups, a plan to meet these goals and details on how they will be implemented and managed.  Creating a well thought out plan will help to ensure an orderly transfer of the operating entity to new ownership, manage the impact of estate and other taxes, identify risks of the transfer and develop plans to mitigate these risk as well as developing a realistic value of the operation and real estate.  Some potential issues that can be caused by not developing a succession plan include a reduced value of the operation, limited options of potential suitors and/or methods of sale, higher effective tax rates for the seller, loss of control and a burden on surviving family members in case of death.  While the father in the photo above is not likely discussing succession of the family farm with his toddler, it was noted at the seminar that the best succession plans are laid out at least ten years before the transfer of ownership is set take place.

General outline for succession planning:

• Goal setting for the farmer / owner - include goals around income, legacy and control
• Goal setting for the stakeholders - include operation viability, children who left the farm and employees’ job security
• Farm management succession - ensure that stakeholders are capable of managing the operation and that they have the desire to continue, ensure the operation has economic viability, plan to cede control over time (can coincide with payments to the from the stakeholder to the owner)
• Identify a best case scenario and explore all other options, including a worst case scenario
• Develop a written plan (which can include buy/sell agreements, trusts, life insurance, etc)
• Implement the plan

Succession planning conversations can be difficult as they should include the topics of life changes, mortality and family relationships.  Not only can the discussions be tough, but some seasoned farm owners also fail to plan because of a perceived loss of control, they're too busy and plan to get to it later, they can't envision doing anything else (even retiring!), planning is too expensive, they expect that their children will just take over the operation and others believe they are invincible.

Stay tuned for an upcoming post, which will dig a little deeper into buy/sell agreements, trusts and life insurance.

Article written by Kristin Taylor.   Kristin is a farm and commercial agribusiness underwriter with the Western Region of Westfield’s AgriBusiness Division. She is located at the company’s headquarters in Westfield Center, Ohio and holds an underwriting responsibility for the states of Illinois and Iowa.

She is a graduate of Ashland University, where she received a Bachelor of Arts in communications, specializing in English and journalism.

Kristin’s love of agriculture is strongly tied to her experience growing up on her family’s registered Jersey farm in north-central Ohio. Her posts focus on the dairy industry perspectives and Westfield’s rich history in farming and agribusiness insurance.