Taking Care of Business

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Partners & Friends,

The management team—Marcus and Shanna—along with Phyllis and me, attended the AgView Executive Business Conference this past week in Florida. It was mostly business-focused, with sessions on cost of production, US and global economics, labor management, marketing scenarios, accounting and tax strategies, land values, entity structure, and more. Here are a few bullet points from the presentations:

Path to Prosperity - Mike Finley

  • Strive for financial independence

  • Invest in appreciating index funds—stock index funds

  • Avoid financial advisors

  • Find the right teachers

Renewables and Tax Implications - Paul Neifer

  • There are lots of unknowns about 45Z, 45Q, and SAF

Farmland Investment and Fractal

  • 50% of Brazil will be out of its climate zone by 2030

  • Illinois has some of the lowest volatility farmland in the world

  • Some people are building their future—others are waiting for the future to impact them

Farm Economics and Trends - Chris Barron

  • Lenders are very concerned and cautious with this ag downturn

  • Know your cost of production

  • Family dynamics and communication are key areas

  • Return to management spread last year was $33/acre to $287/acre

Putting the Odds in Your Favor - David Kohl

  • Economics are overpowering the green movement in Europe

  • Will your operation be sustainable without government subsidies?

  • AI is transforming everything

Labor Management - Panel

  • What is your culture?

  • Define your core values

  • Know your team, know their lives

The ag economy will come out of this economic cycle in 3-5 years. These cycles are predictable. The US is now definitely the second worldwide supplier for soybeans, and that same distinction could soon apply to corn. The new administration is going to create a lot of dust, and until it settles, there are many unknowns. Unless the economies of China and India address climate change solutions, the other economies of the world will not make much of an impact. There has been a nice recovery in commodity prices—not great, but closer to covering the cost of production.

We are so thankful the weather has moderated. This time of year seems to be the dark before the rising sun. The warmth of the south is a nice break from the cold. Harper has also started teaching goat showmanship classes!

Fall 2025 Prices:

  • Corn: $4.28

  • Soybeans: $10.13

Steve

Home Again

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Partners & Friends,

Phyllis and I are home from our agricultural tour of Europe. The last part of our whirlwind of trip involved visiting the following agriculture related sites, as well as noting a few more interesting observations:

  • A large seed cooperative raising corn, soybeans, wheat, cover crops, and more

  • A Swiss Alpine dairy that processes cow and goat cheese  

  • A salt mine that has been mining salt inside a mountain for over 500 years

  • There was more corn and soybean production as we traveled south 

  • The major crop grown was wheat 

  • There is a lot of grass harvest for hay

  • There are few alfalfa fields

  • All livestock was confined inside 

  • There is total integration of technology with guidance, seeding, and fertilization 

All of the countries we visited are quite efficient with crop inputs. Costs are comparable to ours per acre. The vast majority of crops are transported with tractors and trailers—the country roads are not well suited for semi-truck traffic. Another thing worth noting is that semis are not allowed on highways on Sundays, except those hauling perishable or urgent loads. A large portion of farmers’ income is generated off-farm, as many farms are less than 100 acres and only require part-time work. Land is very expensive and does not go for sale often (even less than this country). The former Soviet countries (i.e. Czechia) have larger, more efficient fields, as the state farms were redistributed to former owners. 

Between the great need for electricity and the Russian gas pipeline being out of use, Germany has deemed coal a “green” energy source. There are also many wind turbines and solar panels. The agriculture sector is struggling as we come to grips with a workable carbon reduction program.

Now, to answer the comments from the last blog post:

  • I stand corrected—gas is around $8/gallon in Europe, which incentivizes energy conservation 

  • The ration the cows were fed on the farms we visited was high roughage and grass—these were not typical high production herds

  • Beer is not served warm, but is served with a substantial head to lock in flavor

  • Food prices in Europe are very comparable to ours (although the Euro conversion does add 10% to the transaction)

  • We were disappointed to not visit any animals in total confinement, but the need for bio security is completely understandable

We are back in full swing with hay making, fungicide spraying, mowing, goat showing, land improvement projects, and equipment repair. The Farm Bill debate is struggling to gain traction. There is much discussion regarding how low target prices were set in the 7 year old Farm Bill we are now working with. It seems we are not far from them now (note the fall prices update at the end of each blog post). It has been a rainy summer and few areas have yet to receive rain. The corn and bean crops are looking huge.😅

Goat showing season is ramping up. Harper had great success at the Fulton County Fair last week, and is now preparing for the Illinois State Fair next week. We celebrated a fun birthday weekend with the Luechts in Grafton. Back to school season is a few short weeks away.

Fall Prices (YIKES!):

Corn—3.73

Soybeans—10.03

Please ask and comment away!

Steve

First Impressions

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Partners & Friends,

Our agricultural tour of Europe is already half over. We have been to Holland, Belgium, and Germany and visited the following agriculture related sites so far:

  • A biodynamic teaching farm in the Netherlands

  • The world’s largest daily flower auction 

  • Vineyards along the Rhine

  • A German farm producing hops, cherries, apples, plums, schnapps, and holiday apartments

Throughout the first half of our tour, I have noticed a few things and would like to quickly share:

  • There is much focus on energy conservation—gasoline is over $10/gallon

  • All vehicles are diesel, hybrid, electric—we have only seen 2 pickups our entire time here

  • Everything, including all bottles and cans, are recycled

  • There is a lot of composting—no land wasted on the farms

  • Little time is spent on lawn and roadside mowing, meaning a lot of natural flora and savings on labor and equipment 

  • All farms and fields are small, as in 5-10 acres

  • There is a CRP program similar to ours

  • In order to reduce carbon and nitrates, the European Union is having land purchased and taken out of production (resulting in the farmer protests)

  • Food policy and agriculture subsidies are the largest line item for the European Union—great significance is put on keeping all farmers happy and profitable, but green policies are now overshadowing that

  • Most public restrooms cost 1 euro to get into and use

  • The farmers here deal with the same issues we do: labor availability, government regulations, profitability, oversupply, succession planning, carbon reduction programs, and work/life balance

Thank you for reading and taking interest in our travels! There is more to come—stay tuned.

Steve