Spring Is Here

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Partners & Friends,

We are entering the time of year of great anticipation: planting season is just a few short weeks away! There are last minute financials to be attended to, winter projects being wrapped up, newborn calves on the way, and tiling projects getting finished. The equipment is hooked up and readied for the spring rush to begin. We have received deliveries of seed and products for planting. Over the past few weeks, we have also been able to put two more loads of tile in the ground. Grain delivery continues to be at the forefront of our attention as we try to take advantage of basis opportunities and clean out bins before the hot summer weather. 

The nationwide banking chaos is having a negative effect on the commodity markets. It appears that The Fed will not raise interest rates as expected, which will lead to a longer run of inflation. Energy and fertilizer prices are easing, which will help input prices for next year. The extension of the agreement between Russia and Ukraine will also enable more grain to be exported, which will help relieve worldwide supply issues. There is still, however, much longer-term production capacity lost in Ukraine.

Ali is at UChicago for her last quarter of classes before graduation. Phyllis and I had a wonderful, one-on-one trip with Cora in Kentucky, where we visited the Creation Museum and Ark Encounter. Lindsay is due in less than a month. Goat showing season has resumed again.

Fall Prices:

Corn—5.39

Soybeans—12.92

Enjoy spring!

Steve

Legacy

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Partners & Friends,

As I believe most are aware, my parents, Charles and Wilma, passed away on January 7th and 8th (respectively), a day and half apart. This is just as they would have wanted it—still together after 69 years of marriage. The outpouring of condolences has been so uplifting, and we are overwhelmed by the memories shared and lives they touched. It has truly brought to mind how careful we must be in our everyday lives regarding what and how we share with others; we never know what the takeaway will be for those we interact with. I am so thankful for the positive impact Charles and Wilma left on their earthly journey. They will be long remembered by family and friends. We are planning a celebration of life on July 15th—more details to come.

The Hess Family Farm team is keeping busy this winter with plenty of off-season projects. We’ve gotten some good days in with the tile plow—that task will be in the wings for several years as we continue to improve the fields. We are shipping corn to TriOak feed mill to take advantage of the strong basis. Next week, we will also deliver one of the soybean seed varieties we raised this year—there will be many trips to El Paso involved with that. It is the season of meetings as well. The Precision Planting meeting is this week to announce new products and past season agronomic data. And as a cherry on top, tax preparation season is upon us, with plenty of accounting details to attend to.🙃 

On a global standpoint, things seem very unsettled. The varying weather from cold, to warm, and back again equals energy price volatility. Congress, with its latest members, is preparing to address a new farm bill this year. Ukraine and Russia continue to trade blows and threaten grain exports. On a local standpoint, there is still adamant opposition to CO2 pipelines. La Nina seems to be fading from the weather influence.

School for our grandchildren is back in full motion. Ali is preparing for her last quarter at UChicago. More goat shows are coming up quickly.

Fall Prices:

Corn—5.77

Soybeans—13.39

Let us know what your thoughts, questions, or any other comments are.🙂

Steve

Just Kidding

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Partners and Friends,

It has been some exciting and rewarding times around here. The goat project is exploding in size. Last summer's vigorous AI breeding schedule has resulted in some great birthing experiences. We had 2 sets in October and 2 sets the week of Thanksgiving. All are healthy and doing terrific! 2 more sets are due the week of Christmas. What fun it is to watch the exuberance of youth and wonder of creation. The pens are getting full and decisions now need to be made who gets to stay around for show season.

We were occupied last week installing 80 acres of tile before the weather turned wet. The team and I hope to do another 160 acres this winter, weather permitting. If our land base stayed stable, we probably wouldn’t run out of tiling projects for the next 7 years. We have a list of priority fields and hope to eliminate replanting wet spots soon. The price of material has softened a bit, but is still 50% higher than a few years ago. The tile supply situation is a perfect example of supply logistics recalibrating. We have also completed all NH3 applications. The plan for 2023 is for more corn acres than beans, due to economics and some strategic field reorganization. Time spent in the office has been at a premium over the last several weeks while figuring and analyzing past years’ outcomes and changing some practices for the future—more on that soon. 

The world is still full of black swans. The Ukraine situation remains in a state of turmoil and probably will for a long time. Note this chart; the world energy situation has some resetting to undergo that will not be comfortable for some. We in the United States are truly blessed with natural resources. 

The family is staying quite busy during this holiday season. The Trinity "White Christmas" program is this weekend. The 2022 Hess Family Farm Team Christmas party is also now in the books! Pop question: what year was our farm founded? We are truly celebrating the reason for the season and reflecting on our abundant blessings.

Here is an update on the Ukraine situation from MCAgronomics:

“The situation in Ukraine is continuing in much the same pattern. The Russians are failing on the battlefield in most locations but doing great damage to the electrical grid, natural gas distribution, and drinking water systems. Since the Russians have not been able to gain or hold ground on the battlefield, they are focusing on freezing/starving the civilian population. The will of the Ukrainians appears strong and the ongoing discoveries of murder, torture and other war crimes strengthens their conviction. The Russian population appears to be becoming more and more displeased with Putin’s war making but who knows where that will lead.

The “mud season” is ending and the ground is freezing which will allow a return to battlefield mobility and will favor the Ukraine tactic of bypassing established Russian defensive positions to attack supply lines in the rear.”

2023 Fall Prices:

Corn—5.68

Soybeans—13.74

Soak up this wonderful season!

Steve

First Fruits!

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Partners and Friends,

Harvest has begun! We picked around 600 acres of corn in the past week. Yields are variable and tile paid off big time this year! We are finding that the fields in which we have installed tile are producing significantly larger yields than those without tile. The moisture is still high-between 22% to 26% . The stalk strength is a bit concerning and the ears detach very easily when the stalk is jarred. We are working to keep the dryer running this week and began bean harvest today. From what we have heard so far, the bean yields are looking good! Considering the fact that there is no rain in the forecast for the next 2 weeks we believe harvest will progress very rapidly. The harvest crew attended the fall safety meeting (socially distanced, of course!) and we look forward to some enjoyable time in the field. We are still finishing up some summer projects but overall the beginning days of harvest are going as smooth as can be expected. We always welcome visits, please contact us if you would like to get involved!

The agriculture economy is in a state of flux with China at the moment. There is a lot of importation of agricultural products at the moment. The derecho in Iowa a few weeks ago has affected may farmers, did not end up reducing the corn crop. The stimulus wrangling in DC is causing concerns for overall recovery of the economy and as farmers we are trying to adjust to new paradigms in the food system. Many of these changes are here to stay. These tremendous adjustments in the economy are going to become the new normal.

The family is doing well! School is in full swing, as much as it can be due to the constantly changing protocols regarding the virus. Thankfully, Phyllis’ shoulder is healing remarkably well after her surgery. 

Fall prices

Corn--3.67

SB--10.34

Stay safe and keep in touch! Let us know how you are adopting to all this change!

Prayers and thoughts,

Steve

More New Life

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Partners & Friends,

Our daughter Lindsay birthed her fourth child on January 17th--Marguerite Esther. Margo will join her three brothers in a very busy household. We were at the hospital in the waiting room at delivery time. With every new birth I am so amazed at the wonder and perfection of these precious babies. And I stand in awe of a God who designed and fit this creation together so well!

There has been some great moonlight to work by these last few weeks. Before the storm came last week we were putting tile in the ground. We are working on wet areas that had to be replanted this past spring. We also got a call from one seed company to ship one of the varieties of seed beans. So we were loading trucks in the early morning moonlight. Elsewhere we are finishing up year-end activities in the office, getting financial information together for lenders and tax preparers, ordering seed and chemicals for 2020, and attending meetings to help us better manage the business. This is our chance during the year to catch up, clean out, and get reorganized and ready to work with Mother Nature for the next year.

Great news of the trade agreement signing last week. The market reaction was another, “Buy the rumor; sell the fact.” Some expect the Chinese to announce they are in the market so the price will be more expensive. Those people are not going to show their hand to make their food more expensive! Word of a new virus in China is kind of scary, too. With the globalization of the world it will be very hard to contain things like this. The president spoke at the AFBF annual meeting for the third year in a row. Farmer support seems to be at an all time high. The cold weather doesn't seem like it will last too long to really hamper grain movement this month. We are preparing for a summer shutdown of the Illinois river for some overdue maintenance of seven locks and dams. That means getting the grain we’ve sold to the river terminals delivered sooner rather than later. 

Family is well. This is the season when it seems schoolwork will never end. A bit of winter time off planned and some fun short trips to break up the monotony. 

Fall 2020 prices:

Corn 3.72

Soybeans 9.13

Steve