Ennis educates organic producers at Coralville convention '10 workshop

     Sustainable prices. New opportunities. The year ahead, and '09 in review. Tim Ennis, director of organic grain marketing program NForganics, focused producers on those key points Jan. 20 at a Convention '10 workshop in Coralville, Iowa.
     Ennis pointed out that it's more important than ever for organic growers to have market representation with NForganics, as he anticipates a more difficult time selling grain in the year ahead.
     The organic dairy industry, with milk and other dairy product sales, drives the organic grain industry as its buyers. A Hoard's Dairyman story reported a leveling or about 1 percent drop in organic dairy product sales, and Ennis connected this to the recession as he addressed workshop attendees.
     Ennis shared market highlights of selling organic corn during most of 2008 at $9 per bu. Now, producers who see $6 per bu. load offers, need to strongly consider a sale, he told workshop attendees.
     "If we see $7, you would see me waving my hands and saying, 'Let's sell every bushel we can at $7.'"
     Because of the dramatic drop in the price of high quality organic wheat- from $20 per bu. down to $9 per bu., over the past year- most organic wheat buyers and millers have struggled to fulfill their contract obligations.
     The wheat markets are so bogged down now, that producers often hear there is no bid for their organic wheat. Buyers are more particular than ever and are testing samples for more factors such as vomitoxin.
     Ennis said situations like this show the kind of ride organics has experienced, and he believes prices seen at higher 2008 levels are not sustainable.
     Over the last year, Ennis explained, NForganics sold food-grade and feed-grade soybeans. The organic soybean market has held up price-wise, but sales are still complex, involving sending samples and buyers looking for specific characteristics.
     And in corn, the program sold some food grade corn, but mostly feed grade.
     In food grade, buyers are often testing for GMO, using the cheapest test, which does not provide a specific percentage reading.
     In a potential white corn sale, Ennis sent a sample to a buyer. But it tested .3 percent GMO. Technically that disqualifies it for the sale. "The real question raised among those of us dealing with [organic corn], is it possible with cross pollination of corn, to grow 100 percent non-GMO in this country?"
     In the last year, NForganics has sold rye, barley, oats, wheat, corn, soybeans, and a smaller amount of hay, field peas, and a field peas and barley mix. Upcoming opportunities may be found in growing more unusual crops such as blue corn, which yields fewer bushels per acre, or black turtle beans.
     In the face of the stalled out nature of the wheat marketing, some might consider spelt, which could prove even more difficult than wheat. Others might consider popcorn.
     However, Ennis strongly cautioned. "It's not like falling off a log. You're going to be paying a tuition dividend for the learning experience," he said. There will be some surprises growing different crops.
     Ennis also shared the mic with National Farmers Crop Insurance representatives and pointed out opportunities for organic growers in that area.