Test Plots, Graduations, and Weddings

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Partners,

We just completed the busiest season of the year -- not planting or harvesting, but getting the crops sprayed and fertilized and laid by, while keeping up with fun family and social events on the calendar!  

We still have some late spraying to do on the seed beans we are raising, but we had to wait on the seed to be delivered so planting was delayed.  Seedling emergence this year is excellent in both corn and beans. Stands are very even and we have not had big rains to cause drowned out spots or soil crusting problems.  We try very hard to keep field edges and fence rows and roadsides maintained to control weeds and prevent brush from getting a foothold.  That work needs to be done while the crop is still small enough to drive through.  We also have a considerable amount of grain contracted for June delivery so Charlie S. is busy with that job.  Commodity prices are faltering due to the lack of weather concerns.  Corn is down almost 30 cents and soybeans are 40 cents lower than highs made in the last month.  

For the agricultural sector, the big news is the Bayer purchase of Monsanto.  Bayer has announced that they will drop the Monsanto name going forward.  It does have a reputation (whether it is deserved or not?) of being the big bad bully on the playground.  Bayer had to divest itself of over $6 billion worth of subsidiaries to get the deal past the US Justice department.  There are basically 3 seed/chemical companies remaining in the world.  Businesses have been consolidating since time began.

The past few weeks have been a busy time for family events.  Alison graduated from Wayland Academy in Beaver Dam, Wisconsin, on May 20th.  Our nephew, Luke Hess, was married May 26 in Peoria Heights, Illinois,  and our nephew, Lance Doll, was married on June 1 in Macomb, Michigan.  It was really great to have these three fun family weekends.

Fall Prices:

Corn:  $3.68/bushel

Soybeans:  $9.54/bu 

Keep in touch and enjoy the summer!

Steve

Great Two Weeks

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Partners,

We have just finished a great two week window of planting. We are 100% complete with corn and 75% complete with beans. We are waiting on some seed for the remaining beans which are special seed soybeans we are raising for a major seed comany. Just received a .8 inch rain event the past week, which puts all the planted crop in near-perfect moisture conditions. The soil temperatures have warmed quite nicely and crops are emerging well. We have been keeping up with spraying tasks and will soon start side dressing NH3 to the corn. Our plan for having two planters worked well for the later planting schedule and allowed us to make great progress. We did not put in too many super-long days.

The ag economy seems to be gaining steam with firm commodity prices and renewed optimism. Maybe our president really does know how to negotiate! One plus of all the trade war/tariff talk was the raising of scrap steel prices which gave us an opportunity to get our scrap piles cleaned up. Progress is being made in Congress on the Farm Bill renewal with the biggest stumbling block being how the house and senate will resolve the differences in the SNAP program benefits. Keep an eye on New York Times coverage of progress.

Family: Ali's college decision is made & high school graduation is coming right up. Summer is going to be a busy one with weddings and lots of good things. 

Fall Prices:

Corn 3.89

Soybeans 10.07

Keep in touch,

Steve

April Fools

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Partners,

Growing up, on the 1st of April every year my mom would wake us up announcing, "It snowed last night!" Then there would be a pause and the words, "Aprils Fools!" Well this year the trick was on us: we received about 3-4 inches of white stuff on April 1st. It was gone the next day, but we enjoyed the beauty of it while it lasted.

On the farm we are keeping busy with hooking up our new (to us) planter, tractor maintenance, building organization, grandbaby sitting, and tree clearing. The weather has not been conducive to planting and it is actually giving the market some support. Today's farmer has proven over and over the past decade that we can put 80% of the crop in the ground in a week, so this delay isn't too serious yet, but another two week forecast of wet and cold will start getting attention. We know one of the keys to high production is early planting. 

The farm economy seems to be in a holding pattern. Our friends in the dairy industry are really suffering with low prices, and even the Wall Street Journal picked up on the issue for a front page story. We are watching the trade talk negotiations going on which looks to me like posturing and some scare tactics to let our trading partners know we are tired of giving away the farm to reach a deal. If nothing else our president does have a lot of experience making deals. Stay tuned where this one goes, and ag is usually one of the first whipping boys for retaliatory measures.

The family is doing well and we appreciate all the blessings of health and new life. Opa and Oma got to meet their 10th great-grandchild (our niece's son) this week. Alison is still in college search mode for the right fit. Our house reconstruction has begun and looks to be a longer process than we would prefer, but it'll be nice when it's done.

Fall Prices:

Corn 3.80

Soybeans 10.09

Keep in touch,

Steve

Same Kind of Different

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Partners,                   

We are keeping as busy as we want to be at this time of year.  It won’t be long until we find ourselves back in the field!

I want everyone to know that things do change here on the farm.  Here is a list of some changes we are implementing for the 2018 cropping season:

  • Per our fertility consultant’s advice, we are applying higher rates of dry fertilizer. (Producing larger crops means more nutrients taken from the soil.) This has increased our dry fertilizer cost approximately 15%.
  • We will be implementing an improved method of nitrogen application (split applying) in order to increase N efficiency and reduce nitrate runoff.
  • One result of the water quality study we have been participating in is to see how we can supply N to the plant when needed with less chance for leaching.
  • We are applying supplemental elemental sulfur to all acres with a straight spread of P and K. With fewer coal-fired power plants there is a decrease in available sulfur in the soil.
  • We plan to reduce soybean seed planting population. Research shows lower populations do not reduce economic yield. The money we save on seed is spent on inoculants and biologicals and seed treatments.
  • We are planting more full-season varieties of corn and soybeans.  This may result in additional drying costs, but will help prevent phantom yield loss in corn, and help keep moisture in the SB crop to reduce harvest loss.
  • We are using multi-mode of action herbicides for pre-plant and post-planting to help prevent weed resistance. Our biggest weed issue right now is tall water hemp. We have been told that the invasive plant, palmer amaranth, is only a county away and it is a very tough weed to combat.
  • We are moving forward with the purchase of an additional planter for soybeans. Even though this does increase our equipment cost per acre, we expect an increase in yield since we will have the ability to plant corn and beans at the same time. Research shows higher yield in both crops when planted by the first of May. This is going to increase pressure for the two-week planting window so any offers for planting assistance would be welcome!
  • We are putting sensors on our planter to give us the ability to measure soil organic matter on the go. We hope to use this data to fine-tune our management zones for our multi-hybrid planting (seeding rates and varieties). 

The planter has been delivered and we are in process of getting both units hooked up and ready. Some parts are replaced almost every year. We have also been shipping corn, and hoping our seed beans will be called for delivery soon. 

The agriculture industry is watching with great interest the trade talks with our partners and the buzz about changing the RFS (renewable fuel) standards. It has been estimated that within 5 years Brazil will grow more corn than the US. We need world trade and cannot afford to seem like the bullies on the block!  Grain markets are showing some life as the drought in Argentina hangs on. 

Family is doing well--Lindsay and Keith had their third son on March 4th. Alison is on a school trip to Germany during spring break and is still undecided about college choice. Phyllis and I have returned from a few weeks in Florida.

Fall bids--

Corn--3.70

SB--10.14

Keep in touch,

Steve

Data Decisions

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Partners,

We are in the middle of winter, reminding ourselves that we live in Illinois and winters can be harsh! Doing chores for the heifers can be brutal some days, especially when the waterers are having issues. We do have two waterers currently that we cannot thaw out. Thank goodness the temperatures are moderating and hopefully soon we can get back to normal operation.

It is still meeting season. Last week Marcus and I attended the Precision Planting Conference in Tremont to learn the latest agronomy tips and equipment available to raise corn, soybeans, and wheat. The planting pass is the most important one of the year and we are learning new things all the time about how to fine tune the process to give us a better chance of successful harvest. It struck me during the meeting how much data is digested in agriculture now, to come up with practices which will give us better chances of economic success. The technology in our multi-hybrid planter is coming of age, and the decision process regarding how to place varieties is being modified all the time. The number of tests and trials to pick which agronomic practices to implement is mind boggling. After 40+ years of farming and collecting data, I finally feel like we are getting useful information for decision making out of the time and money spent collecting the mass of information.

Also striking is the amount of money we must spend to keep up with the equipment technology advances. Our technology budget is around $10/acre/year. One of our take-homes from our data analysis is that we should be able to pencil in a payoff of a separate bean planter in three years or less. Having the ability to plant beans and corn at the same time, and planting in narrower rows to take advantage of sunlight and weed control make this decision seem like an easy one. We are also adding seed firmers to the planter which will be able to sense five things on the seed trench, on the go while planting.

Agriculture is trying to digest the new tax laws. It appears to me that we will have somewhat reduced personal taxes, while the tax rates for our corporation will be higher. We have unlimited equipment write-offs but what good is that in an environment of such low margins? The president's appearance at the American Farm Bureau annual meeting was a great PR event, but little substance. Fuel prices are slowly rising as crude oil supplies remain tight. 

Family is doing well. School is back in session for all elementary and high school students and college professors in the family. Alison has applied to several colleges of her choice. Our house had a pipe freeze and break and we have been drying out for two weeks now. Phyllis slipped on the ice and is slowly recovering from two cracked vertebrae.

Fall Prices:

Corn 3.51

Soybeans 9.58 

Steve