We're Experts at Working From Home

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Partners & Friends,

On one hand it seems like time is flying by, but with all the uncertainty in the world it seems like the unknown ahead of us is coming very slowly. As much as we are used to instant gratification in today's society the pace of "shelter in place" is perilously slow. At Hess Family Farm we are adapting to differences as best we can, including

  • Social distancing among families-keeping 6' between people when working or socializing

  • Staying home at night

  • Grocery shopping every 10 days

  • Ali is doing the last quarter of her second year at UChicago from home 

  • Watching Dr. Pol on Disney 

  • No hugging or spending time with grandkids

  • Riding in backseats transporting people—feels like being chauffeured

  • Watching someone fixing a machine and not being able to help

  • Not being able to visit my parents face to face

Someday we'll look back and say all this makes sense when we see the results. So far there have been very few positive tests in our area, but I feel it is just a matter of time till most have some exposure and get some sort of immunity. Like everyone is discussing, the world is going to be a lot different and this has only sped up the change that is coming. It does seem to be harder for older people to accept and adapt—keep us in your prayers.

On the farm we have completed the first pass of spraying all the crop ground. Last week we planted about 200 acres of soybeans. We are also fervently trying to repair issues from last year's extreme rains. We have hauled dirt to repair washouts for days. Our excavator has been used almost every day repairing tile holes. We have seeded several new waterways to prevent future erosion. Our corn planter has gone through another major rebuild with more technology added.

With Ali home she has rebooted our livestock enterprise with a group of bucket calves. We have also picked up a couple of beef cows for the pasture. We have been selling unused equipment online to clean up some storage space and we even purchased a combine online in Mississippi. We have been in on several zoom meetings with suppliers and could actually get used to the efficiencies of all this technology. I do miss the personal contact but the world is changing.

On the US agriculture front things are in chaos. I'm sure you are aware of pork and chicken processing plants closing, dairy farmers dumping milk, and the bottom falling out of corn prices due to ethanol demand and China not buying and the huge predicted planted acres forecast.  Even with government help this is going to be a very difficult year to stay on top of marketing, production, and finance (our three legs of the business). I have been lecturing my family. We need to be very aware of the future and how we can adapt to it. The opportunities are going to be great but I fear also the downsides will be horrendous.

Family is doing well. Having a college daughter taking class from home makes me ask the question, why not make this offering a part of education and skip the expense of college room and board? We are enjoying FaceTime and Duo to see the families but miss the personal time and hugs and cuddling. We were already used to church online when we travel but miss the face to face time there as well. Last Sunday we took in 3 services. One big concern I have is we are becoming more addicted to the news and feeling like we need to read and see everything. The downside of that is the news is so depressing it keeps us from realizing how blessed we really are. 

New Crop Prices:

Corn 3.17

Soybeans 8.51

Let us know how you all are doing.

Steve

What Others Say

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Partners & Friends,

We have spent several days attending meeting focused on marketing and management for ag producers. We are always looking for ways to improve or enhance our operation to become more profitable and efficient.

Here are a few bullets from what we heard.

Marketing

--World commodity supplies are ample and this is a global market we are competing in

--Weaker US dollar should give us a competitive edge

--Watch for and take advantage of basis opportunities

--China Phase 1-not bullish but does calm the water

--China Phase 1 good for meat sales

--Macro markets (stocks) are off to the races

--Pork production in US is up 25% in last 6 years

Weather

--Summer temps are ALWAYS higher than normal after warmer than normal winter

--Corn belt weather has changed to wetter because of the way we raise corn

--Warm February temps usually mean cool wet spring and hot summer

--3 day forecast is usually 97% accurate

--10 day forecast usually 50% accurate

--Climate (change) is the average of 30 year weather and is always changing

Management

--Orlando is the safest zip code in America

--Management is doing. Leadership is being.

--Interest rate does not matter to government spending

--By 2040 60,000 farms will produce 75% of US ag output

--Younger generation is resentful of supporting large retiring group

--We need to produce what the consumer wants!!!!

—There will be more change in agriculture during the next 10 years than during the past 70

--Success in growing a business will be about alignment between production and consumption

--Millennials care more about what has been done on the farm for generations than who has owned it

--Oil is becoming a global commodity-less volatile

--We can be low cost or high quality producers

We are sharing current thinking with our partners so you can have an idea of how we are positioning ourselves to move forward. One thing for sure in our industry is that things are constantly changing.  The way our farm has survived for 150 years is to adapt, hopefully early, to new ideas and technology and implement them. Farming today looks so different than when Phillip Doll came to Bushnell IL and chose the farm we live on today. But all generations have been progressive and forward thinking, which is why this business still stands today. As we age  it is harder to move toward different ways of doing things but necessary for survival. 

Some things do remain constant throughout the ages. Honesty, hard work, ethics, family values, sustainability and the culture we create are still the foundation for what we do. To care for and leave this environment a better place than what we inherited is the goal.

Fall Prices:

Corn 3.69

Soybeans 8.86

Keep in touch. Comments appreciated!

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

2020

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Partners & Friends,

Here in this season we pause to reflect on the past year and plan ahead for the next. We are constantly asking ourselves how we can make the operation more sustainable, do more with less, be more efficient, increase our margins, determine what our core competencies are and best utilize our resources. Here are some of our thoughts heading into next year.

  • Tile—our highest yields consistently come from the ground that is patterned drained. Earlier planting, more even stands, better root development, easier harvest and less soil compaction all add up to increase the ROI 

  • Seed Beans—raising seed gets us the newest and best varieties with the most yield potential, but means weed control must be tip-top, bin space is an issue, and combine clean-out on hot afternoons is the most unpleasant 

  • Equipment Efficiency—keeping track of hours per power unit and repair cost of each piece of equipment gives information about cost to operate, when it’s time to replace, and do we need it

  • Less Tillage—part of the effort to make the land more sustainable is fewer trips, less compaction, and covering more acres with existing labor

  • Management Zones—part of the strategy of our multi-hybrid planter is investing in the parts of fields with the most profit potential and accepting the lower-yielding areas for what they are

  • Marketing—this past season reinforced that we must take advantage of opportunities to lock in profit and that the market is always right

  • Human Resources—our most valuable commodity is people—team members, suppliers, grain originators, landowners; those relationships must be nurtured and maintained

There are lots of details involved in this list that must be managed for the bottom line to be positively affected. That's what our job is-to bring everything together to allow this 150 year-old business to carry on to the next generation. We appreciate all who are a part of this endeavor that allows us to keep our dream jobs.

It appears the trade talks have negotiated a Phase One deal. We anxiously await seeing all the details on paper and signed. The general economy seems so strong with the labor marker so tight. Hopefully this next year’s major weather anomaly will be somewhere else in the world. :)

We are all celebrating this Christmas season with family and friends while enjoying all the blessings we have been given by a very generous Creator. Lindsay is due with their 4th child any day now. Ali is dog and cat sitting close to college campus. Preparing for bringing in 2020 with family and friends.

Have a Great Contented New Year!

Steve

Grateful

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Partners & friends,

Thinking about all we have been challenged with this past year, this job is still a dream job. There are several things I am so thankful for.

  • For ancestors that weren't afraid of hard work and perseverance in the face of weather, economic and social issues

  • For rural America and the peace and tranquility we are afforded in this setting

  • For the opportunities to work with this beautiful plant and animal creation every day

  • For friends and neighbors who live out loving, serving and caring

  • For  freedom of religion and the wonderful community of believers we are in

  • For healthy Christ-seeking children and grandchildren 

  • For living in a country where we openly and freely choose who will govern us

  • For a loving God who loves and forgives me every day

Here on the farm we are in the midst of office crunch time. Paying year end bills, analyzing the past years crops, choosing seed and chemicals and crop rotations for this next season, and figuring out how to do more with less this next year, are a part of the processes we go through every year at this time. Outside the office we are cleaning equipment, hauling grain, helping some neighbors finish harvest, and constantly repairing tractors, trucks and combines. Our eleven head of cattle need to be fed and cared for each day. This is also the season for seed, marketing and management meetings.

As discombobulated as world politics seem my history reading reminds me that this is the way world governments have always been. Producing and protecting food supplies have been priorities for all civilizations. Trade wars have always been present. And world leaders have always recognized that a well-fed populace is easier to govern.

This is the season for Christmas programs. School and church programs remind us of why we celebrate and proclaim great joy from the Birth 2000 years ago. A real story for the ages. Ali has completed first quarter of her sophomore year. Looking forward to some time with family and friends these next few weeks.

Steve