Equipment

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Partners,

We are keeping busy with lots of winter work, diligently trying to keep our equipment costs low to stay competitive. Hence we operate a lineup of modern used equipment. Our sprayer has been through the shop and now the combine is in process. All of our major pieces of equipment are professionally inspected each year and a list of worn or questionable parts is developed. We then use our labor force to upgrade the projects on the list we are capable of completing. The bigger, more involved tasks are performed at the dealership. When each tractor, combine, sprayer, planter, and head is put into storage it is ready to go to the field when planting/spraying/harvest season comes.

The lure of new paint is one we try to avoid. Just like the depreciation hit new vehicles take the first two years, we try to be wise about the true cost of our equipment lineup over time. We believe our equipment capacity is adequate for the number of acres we farm and labor available, but there is not much margin for breakdowns or time lost to equipment malfunctions. We did some major upgrading 6 years ago when we moved up to 24-row planting equipment. Of all our major pieces of equipment, the planter is the only thing we purchased new.

Commodity prices have been trading a very narrow range for several weeks now. Corn and beans are poised to break out either higher or lower soon. I will discuss weather soon in another post. The tariffs/trade war situation with China is ongoing but showing some positive movement toward resolution. The first big step will be getting the Chinese to admit they have been bending the rules in the first place. We hope Congress approves the new USMCA agreement; seems to be lots of positive things in it for Ag. The new Farm Bill is being implemented and apparently there is a lot more to it than just a renewal of the 2012 act—a lot of pages with new details. The weather pattern is causing some disruptions in the Midwest for river traffic and grain deliveries. We are thankful we had very little grain to deliver in January-February.

Family doing well. Lots of missed school days with all the weather issues. (That is one thing the homeschooled kids miss out on is snow days and make-up days.) We do still have 14 head of heifers to care for so there has been some struggle with frozen waterers this past month.

Fall prices

Corn--3.73

Soybeans--8.96

Keep in touch,

Steve