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Organic Grains and Oilseeds for Animal Feed

Introduction Organic food sales in the U.S. grew from $1 billion in 1990 to $25 billion in 2009 due to increasing demand for both plant and animal products. Organic food production in the U.S. is regulated by the USDA National Organic Program (NOP), which requires that grains fed organic feed crop sales. Currently there is little to organic livestock be organically produced. As organic feed crop production in Kentucky. Some demand for organic animal products increases, so local organic livestock producers grow their own does the need for organic feed. grains for on-farm use; however, the majority purchase organic feeds that have been grown Marketing out-of-state. Most organic grain sold through Unprocessed organic feed grains and oilseeds Kentucky-based feed mills has been produced can be sold under contract to feed mills, outside of the Commonwealth. The lack of local manufacturers, or brokers, but few mills in organic feed sources presents a potential market Kentucky are currently certified and equipped opportunity for organic grain and oilseed crop for handling organic feed. Another option is to production in Kentucky. sell feed crops directly to end users. Since many livestock producers prefer a pre-mixed feed The high price of organic feed, which can blend, producers with processing and blending cost twice as much as conventional feed, is an equipment could have a marketing advantage. indication of a limited supply. The absence of Producers with storage facilities could have a locally available, reasonably priced organic feed marketing advantage as this allows them to hold has constrained Kentucky’s organic livestock their crop and sell when prices are strong. sector.

Market Outlook Organic poultry, dairy, and pork producers have Continued expansion of a particular need for organic organic meat and poultry feed. While organic poultry is markets is expected, bringing pastured, grains are the primary increasing opportunities for feed. Some poultry farms

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Educational programs of the Kentucky Cooperative Extension Service serve all people regardless of race, color, age, sex, religion, disability, or national origin. have been discouraged from pursuing organic resistance or tolerance to commonly occurring certification due to the high cost and limited diseases and insects. Other key desirable availability of organic feed. Several poultry features include good standability, stress producers, who otherwise use organic methods, tolerance, suitable days to maturity, and yield. sell their birds as “natural” because they can use For University of Kentucky statewide variety conventional feed at a considerable cost savings. trial research data, refer to the KY Statewide Trials page on the Department of Plant and Kentucky’s organic dairy sector has grown Soil Sciences Grain Crops Extension Web site rapidly in recent years. NOP standards require (see Selected Resources). When grown under dairy cattle to obtain at least 30% of their dry contract, the processor generally specifies the matter intake from pasture during the grazing hybrids to be planted. season, but the off-season feed requirement can be approximately a bushel of grain per head per Organic growers must document their effort day. Organic pork producers present a largely to obtain certified organic seed, but individual undeveloped market. organic certifiers may permit the use of untreated conventional seed if suitable organic seed is Organic feed grain markets may be easier to unavailable. Transgenic or genetically modified identify and more accessible than those for (GMO) hybrids are prohibited in organic organic food grains. In addition, the quality production. specifications for animal feed are less stringent than for grains and oilseeds destined for Site selection and preparation human consumption. Growers new to organic Only land that has been free of prohibited farming may find organic feed production less substances (e.g. synthetic pesticides and artificial exacting and perhaps less risky than food grain fertilizers) for 3 years can be certified for organic production. production. Selecting a growing site that is well-suited to the crop is especially important As with any niche market, prospective organic when utilizing organic methods. Avoid planting growers should identify a viable market before in fields with a history of aggressive weed or investing in a new enterprise. Contracts should disease pressure. clearly state the specific cultivars desired, quality standards, quantity expected, and Healthy soil is the key to successful organic whether the grain or oilseed is to be cleaned, production. Soil fertility is enhanced through processed, bagged, and/or stored prior to cover crops, composts, green manure, properly delivery or pick-up. aged animal manure, and approved natural fertilizers. A crop rotation plan designed to Production Considerations increase soil fertility and reduce weed pressure Crop and cultivar selection is a critical aspect of site preparation. Rotations The most commonly used feed crops are corn have the additional benefits of improving plant and soybean. Alternative grain and oilseed crops health, disrupting insect and disease cycles, and that could be produced for animal feed include enhancing biodiversity. amaranth, barley, oats, pearl millet, rye, sorghum, spelt, sunflower seed, triticale, and wheat. Well-planned rotations and soil-building cover crops are particularly important in replenishing Growers should only select locally adapted the soil when growing soil-depleting crops, such cultivars that have the qualities in demand for as corn. NOP regulations require that all cover the intended market. It is especially important crops planted in a certified organic field must in organic production to choose varieties with be grown from organic seed, if it is available. While cover crops of grasses will increase slower to emerge and may result in damping-off organic matter, nitrogen-fixing legumes have the problems. In addition, delays in emergence may additional benefit of adding nitrogen. A healthy mean plants face greater weed completion. legume cover crop that has been incorporated into the soil prior to the cash crop can supply a large Some organic feed crops will need to be protected portion of its nitrogen needs. While soybeans from pollen drift from neighboring GMO fields. fix nitrogen, little of it is returned to the soil. This is mainly a concern for wind-pollinated Supplemental organic nutrient sources include crops, such as corn. Organic grain testing positive bloodmeal, feathermeal, fishmeal, cottonseed for GMOs due to contaminated pollen will be meal, and soybean meal. rejected as non-organic. The drift and run-off of prohibited substances, such as pesticides, from Growers using traditional tillage techniques conventional farms can also compromise the need to incorporate the cover crop 2 to 3 crop’s organic certification status. Preventative weeks in advance of planting to allow time for strategies include the use of buffer zones and decomposition. This major tillage operation barriers, altering drainage patterns, posting “no should be followed by lighter tilling to create spray” signs, and cooperating with neighboring a smooth, weed-free seedbed prior to planting. conventional farmers. Growers using reduced tillage systems, such as no-till, must use non-chemical means of killing Growers with split operations (organic and the previous crop. Mowing, undercutting, and conventional production on the same farm) must rolling are effective replacements for herbicides take additional steps to prevent the commingling in organic systems. of their two systems. Shared equipment must be decontaminated before use with organic crops. Planting and production Plant density is an important consideration in Pest management organic systems. Higher plant populations tend to Pest management in organic production out-compete weeds more effectively. In addition, emphasizes prevention through good production the canopy closes more quickly in narrow-spaced and cultural methods. The goal is not necessarily rows, reducing light penetration to the ground, the complete elimination of a pest, but rather to and thereby inhibiting weed germination. These manage pests and diseases to keep crop damage benefits must be weighed against the greater within acceptable economic levels. Variety potential for disease and insect pests as well as selection, plant density, planting date, and machinery costs associated with narrower rows. following good cultural practices are important to enhancing plant health; healthy vigorous Varying the planting date can be a means of plants are better able to survive pest infestations. reducing the risk of some disease and pest Frequent crop inspections are essential to keeping problems. For example, planting small grains in ahead of potential problems; monitoring pests Kentucky after the fly-free date not only reduces requires accurate identification. the risk of Hessian fly infestations, but it also reduces the risk of aphid infestations and barley Disease and insect pests will vary depending on yellow dwarf virus infections. On the other hand, the crop. Common pest management practices late-planted small grain stands may be thinner include crop rotation; removal or incorporation with fewer tillers developing. of crop residues; use of resistant cultivars; timely planting; and avoidance of stresses due Seed depth can be a critical factor in organic to poor fertility, improper soil pH, or inadequate systems. Seed planted too deeply will be moisture. Organic growers use a range of Integrated Pest Management (IPM) practices, switching from conventional to organic. Organic including regular field scouting. grains and oilseeds contaminated with GMOs can result in the rejection of the entire load. The main challenge to organic growers is often weed control. If left unchecked, weeds Processing feed can involve cleaning, compete with plants for water and nutrients, conditioning, milling, extrusion, and/or bagging. harbor insect and disease pests, and reduce air Processing areas and bagging materials must be circulation. Since synthetic herbicides cannot protected against potential contamination from be used, organic growers will need to manage prohibited substances and commingling with weeds with alternative methods. An important conventional grains. first step is to avoid planting in sites with high noxious perennial weed populations. Along with Labor requirements site selection, site preparation should be aimed About 25% more labor is required for organic at making sure existing weeds are under control. grain production than for conventional; expect The seedbed needs to be free of weeds. Managing about 2 to 2½ hours per acre. Small farms tend weeds during the first 4 to 6 weeks after planting to use more labor per acre than large farms. is particularly important to maintaining high crop yields. Cultivation, propane torches or flame Economic Considerations weeders, and mowing are methods of reducing Initial investments include land preparation weed problems during the growing season. (including cover crop seeding), purchase of seed, and organic fertilizers. Harvest, storage, and processing Harvested grains and oilseeds must be undamaged Total 2010 variable costs for organic field corn and free of weed seed, ergot, mycotoxins, and (for feed) were estimated at $262 per acre with other contaminants. All equipment, storage areas, fixed costs of approximately $100 per acre. packaging materials, and transportation vehicles Presuming a harvest of 100 bushels sold at $6.00 must comply with NOP standards. This is also per bushel, gross returns would equal $600 per true of processing areas and mills. Growers acre. Returns to operator labor, land, capital with split operations must either use separate and management would be approximately $238 equipment and facilities for these operations per acre. or decontaminate equipment before it is used for organic products. Additionally, producers For organic soybeans, total 2010 variable costs who share harvest equipment with neighboring were estimated at $200 per acre with fixed costs farms or who hire custom operators must be of approximately $110 per acre. Assuming a diligent in preventing commingling of organic harvest of 30 bushels at $16 per bushel, gross and non-organic grains. The integrity of organic returns would equal $480 per acre. Returns to crops must be maintained through all stages of operator labor, land, capital and management production, harvest, storage, and transportation. would be approximately $170 per acre.

Where the possibility of cross pollination with Total 2010 variable costs for organic wheat were GMO crops exists, it is often advisable to harvest estimated at $215 per acre with fixed costs of the outer edges of the field first and market it as approximately $70 per acre. Assuming a harvest conventional grain. This can reduce the risk of of 45 bushels of wheat per acre at $7 per bushel contaminating the organic crop with accidental and $100 income from straw, gross returns GMO cultivar crosses. Since combines can would equal $415 per acre. Returns to operator hold several bushels from the previous harvest, labor, land, capital and management would be thorough cleaning of equipment is crucial when approximately $130 per acre. Selected Resources • National Organic Program (USDA-AMS) • Corn and Soybean Budgets (University of http://www.ams.usda.gov/nop Kentucky, 2011) • Organic Crop Production Enterprise Budgets http://www.ca.uky.edu/cmspubsclass/files/ (Iowa State University, 2008) ghalich/Budgets-Corn_and_Soybean.xls http://www.extension.iastate.edu/agdm/crops/ • Grain Crops Extension (University of html/a1-18.html Kentucky) • Organic Feed-grain Markets: Considerations http://www.uky.edu/Ag/GrainCrops/welcome. for Potential Virginia Producers (Virginia Tech, htm 2009) • KY Statewide Trials (University of Kentucky) http://pubs.ext.vt.edu/448/448-520/448-520. http://www.uky.edu/Ag/GrainCrops/ html varietytesting.htm Organic Field Corn Production (ATTRA, 2002) • Wheat and Wheat Double-Crop Soybean https://attra.ncat.org/attra-pub/summaries/ Budgets (University of Kentucky, 2011) summary.php?pub=90 http://www.ca.uky.edu/cmspubsclass/files/ • Organic Grain Crop Budgets (North Carolina ghalich/Budgets-Wheat_Dbl-Crop.xls State University, 2007) • Organic Marketing (Kentucky Department of http://www.organicgrains.ncsu.edu/production/ Agriculture) cropbudgets.htm http://www.kyagr.com/marketing/plantmktg/ • Organic Grain Production Guide (North organic/index.htm Carolina State University, 2005) • Cover Crops and No-till Management for http://www.organicgrains.ncsu.edu/ Organic Systems (Rodale Institute, 2011) cropproduction/Production%20Guide/ http://66.147.244.123/~rodalein/wp- tableofcontents.htm content/uploads/2012/12/TechBulletin_ • Organic Small Grain Production Overview orgnotill_201112.pdf (ATTRA, 2012) • Disease and Insect Management in Organic https://attra.ncat.org/attra-pub/summaries/ Small Grains (ATTRA, 2011) summary.php?pub=385 https://attra.ncat.org/attra-pub/summaries/ • Organic Weed Control Toolbox (eXtension, summary.php?pub=363 2010) • GMO Contamination Prevention—What http://www.extension.org/article/18532 Does it Take? (University of Minnesota, 2012) • Overview of Cover Crops and Green http://swroc.cfans.umn.edu/prod/groups/ Manures (ATTRA, 2003) cfans/@pub/@cfans/@swroc/documents/article/ https://attra.ncat.org/attra-pub/summaries/ cfans_article_390283.pdf summary.php?pub=288 • Marketing Organic Grains (ATTRA, 2005) • Profitability of Transitioning to Organic Grain https://attra.ncat.org/attra-pub/summaries/ Crops in Indiana (Purdue University, 2010) summary.php?pub=101 http://www.agecon.purdue.edu/extension/pubs/ • Marketing Organic Grains (Midwest Organic paer/2010/february/alexander.asp and Sustainable Education Service, 2009) • Protecting the Integrity of Organic Grains http://www.mosesorganic.org/attachments/ During Harvest (Rodale Institute, 2004) MOSES%20fact%20sheet/10MarketGrains.pdf http://newfarm.rodaleinstitute.org/columns/ inspector/2004/0804/081704.shtml

Reviewed by Mike Bomford, Extension Specialist, Kentucky State University February 2011 Photos: soybean seed courtesy of Illinois State University; pearl millet seed by J. Wilson, USDA-ARS; oat seed courtesy of Wikimedia Commons; and corn seed by Paul Vincelli, University of Kentucky

For additional information, contact your local County Extension agent