Happy New Year!

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Partners & Friends,

We are enjoying this holiday season with family and friends. The pace on the farm has nearly slowed to a stop, except for office work and livestock chores. The December corn contract has been filled, and we will start January deliveries in earnest next week. The team enjoyed some social time at our Christmas gathering before Christmas. We rarely have the chance to get to know one another better amidst the usual hustle and bustle of farm life. We acknowledge a wonderful, blessed 2024 and truly give thanks for all the gifts and graces we enjoy working with God's creation while living in rural America. We hope you feel the same wherever you are placed.

There is much apprehension regarding the upcoming political landscape. Brazil seems to have a record soybean crop. Low water levels on the Mississippi are causing rising barge rates and lower cash grain bids. We are forecasted for a longer cold snap next week.

Phyllis and I had a terrific holiday with our family. The kids are growing so big so fast. Lindsay and Keith are expecting in May. We have a couple of winter meetings scheduled. We also enjoyed seeing friends at the Illinois Farm Bureau meeting in Chicago.

Fall 2025 Prices:

Corn: $4.14

Soybeans: $9.91

Have a fantastic 2025!

Steve

Giving Thanks

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Partners & Friends,

As we enter this season of the year following a very abundant and safe harvest, it would do us all well to take a moment and understand how blessed we truly are. We live in a country where we can vote for and argue against whoever we wish without fear of retribution. We can travel wherever and whenever we wish. We can worship as we choose. We can walk into a store and buy any type of food we prefer. We can be in business for ourselves. We can enjoy the beauty of creation and nature each and every day. And we can live without worry of attacks from adversaries. Thank You, Lord!

Post-harvest, we are keeping busy with NH3 application, vertical tillage (light discing), and some ripping of a few fields. The weather has remained mostly clear, and only in the last few days has frozen soil become an issue. Another round of goat kidding is over. We have an additional large corn delivery to make to the shuttle in December. Machinery cleanup and maintenance are ongoing, and the office always beckons for short bursts of time.

There are lots of unknowns to be determined in DC. The Secretary of Agriculture pick seems to have a great agricultural background but not much history to predict how she leans on policy. A new Farm Bill will not happen until next year. In Illinois, the veto session produced little in the way of legislation. Also, our governor has announced he wants Illinois to be the California of the Midwest!😬

Our family is busy with fall concerts, basketball games, college tours, gymnastics competitions, goat shows, dance recitals, final exams, and Christmas program practices. We give thanks for our friends and family, as well as this Christmas season when we can gather, strengthen, and deepen relationships and praise the wonder of the birth of our Savior. Soak it up!

Fall 2025 Prices:

Corn—$4.01

Soybeans—$9.36

Keep in touch!

Steve

5 Things

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Partners & Friends,

Marcus recently returned from the Ag View Executive Business Conference, which we all usually try to attend annually. This is an agriculture business consulting firm that advises on management, succession planning, transitions, marketing, and operational efficiencies. A subscriber based podcast called 19 Minutes summed up the meeting quite well by defining the 5 things that make a business wise and worthwhile to invest in. They are as follows:

1. Holding your business to a high degree of professionalism

2. Taking continuing education seriously for management and team members

3. Taking time off to rest and refresh

4. Meeting new and interesting people

5. Developing key metric and performance measures to track operational success

At Hess Family Farm, we do our best to consistently incorporate these guidelines into what we do and who we are. Most of these measures could apply to our own personal lives as well.

On the farm, we are hauling seed beans for Becks to ElPaso and have delivered 14 loads so far. The weather looks good enough to resume tiling again this week. Office work includes preparing for taxes, finishing up crop input planning, and finalizing record procedures for 2024. We are looking into a grain dryer update, as well as attending a few more farm meetings to help plan for the 2024 corn and soybean crop.

AI will be influencing many aspects of agriculture and our lives in the future. A speaker noted that it will revolutionize modern-day farming in the same way that machinery and other technological equipment replaced horses in the fields last century. Brazil is rapidly harvesting their soy crop and planting safrinha corn as fast as possible to catch the rain needed. Weather prospects for the approaching spring planting season predict short, intermittent planting windows. The spring crop insurance prices for corn and beans are being set during the month of February and are considerably lower than last year.

Phyllis and I wrapped up our Christmas visits with a trip to Asheville last week to visit Ali. We also got to see Phil in Florida for a couple of days, and the time away from the cold and snow was enjoyed.

Fall Prices:

Corn—4.10

Soybeans—10.67

Steve 

What We Learned

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Partners & Friends,

We just had our annual meeting with our crop consultants—the people we rely on to scout our crops, do soil sampling, make agronomic recommendations, analyze our planting and yield data, and help us decide what adjustments to make to our crop operation. The more we realize we cannot complete all tasks with the resources we have, the more people like them become an integral part of our business. The Hess Family Farm has been collecting data for over 30 years. However, only in the last 10 years have we truly been able to use and apply all the information we have amassed. Our lessons from 2023 are as follows:

  • Beans planted early yield as well as later maturity beans

  • Residue management for beans is critical

  • We must add sulfur to our total fertility program placed in the correct location

  • Goose-necking corn due to the derecho caused substantial yield loss in some fields

  • Higher fertility is paying dividends

  • The sweet spot for corn populations is around 35,000 plants per acre

In addition to staying warm in the office, we are attending farm business meetings—a summary report will be posted soon. Another goat was born this past week. Keeping the waterers thawed has proved to be a bit of a challenge. Commodity prices continue to drift lower, and we are beginning to wonder where the bottom will be. The cold weather has put a halt on our tiling projects. Bean seeds will be delivered once the weather warms soon.

A USDA report last week revealed that this past harvest had record corn and bean yields, despite all the weather challenges. There is hope for a new farm bill in Washington. South America is proving to be a bigger competitor now than ever, with so much potential to expand. Weather forecasting remains more of an art than a science.

Our grandchildren are all enjoying the snow, although the 16 inches in Wisconsin are far more than the 5 inches we have here. January is a busy month full of birthdays in our family. Florida seems like a good alternative on days like these. 😅

Fall Prices:

Corn—4.50

Soybeans—11.59

Stay warm and think of spring and sunshine!

Steve

New Year

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Partners & Friends,

We are making our way into 2024 after a wonderful holiday season celebrating the birth of our Savior and enjoying time with family and friends. Along with that is a lot of year-end office time and bookkeeping frenzy. We have finalized our corn and soybean seed orders for the next crop season after studying our own field research and consulting with our crop consultants. Our fertilizer needs are mostly booked and applied. The only missing link is our spring side dress NH3 application. We have pre-paid for chemicals and fungicide. When we make our plans, we are preparing for a robust crop with all the inputs needed for top yields. It is encouraging that input costs are mostly lower, except for seed. Commodity prices are certainly lower than year ago. There’ll be some event along the way that will provide marketing opportunities. 

The Hess Family Farm team is putting more tile in the ground whenever the weather allows. Plans are for another 200 acres this year, although the weather forecast does not look good after this week. We have emptied all the corn bins. This is the first time all bins are empty this early, but we took advantage of some early delivery offers that have turned out well. We are now in the midst of year-end bookkeeping tasks, turning out 1099s and W-2s, and preparing for tax filings. There are a few meetings to attend to help with continuing education and business strategy updates.

The current world events are always black swans for our planning. The Middle East conflict is putting energy prices on a roller coaster almost daily. We have booked almost half of our needs for 2024. The situation with the war in Ukraine is jerking commodity prices around daily. Weather in South America is of extreme importance in the midst of their critical growing season. Interest rates are another area we pay constant attention to. Operating interest is almost 2x what rates were 1 year ago.

Our family is doing well. This season of gatherings has shown us just how thankful we are for our friends and family. The support and prayers our family received over the past year of great highs and lows means so much—thank you! We are looking forward to a great New Year with much time for relationships. May you all take time for the ones in your lives.

Fall Prices:

Corn—4.72

Soybeans—11.93

Steve