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

Winter Work

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Partners & Friends,

We at the Hess Family Farm are busy with winter tasks that tend to be a bit monotonous and repetitive. Over 20,000 bushels of beans were delivered to Beck’s Hybrids plant in El Paso, Illinois, for processing into seed. We will likely plant some of that very same seed this spring. The beans yielded and stored well. The corn hauling is down to the last (but largest 😬) bin. There have been many full days in the office finishing up accounting for 2024, getting ready for tax preparation, ordering inputs for 2025, engaging in short- and long-term financial planning, and attending various meetings offered by suppliers and consultants. This cold January has made keeping everything thawed out and operating a bit challenging. We can't help but remember how difficult this kind of weather was back when we were milking cows! We are also trying to plan for changes in the next crop year to bolster the bottom line. These are always tough decisions! What will the weather be like? What will impact market prices? How will interest rates trend in the months ahead? It seems like 2025 will be challenging for the farm economy overall, but we are glad that the January crop report was a bit bullish.

The new administration in D.C. is off and running. We pray for wisdom and fiscal responsibility. When the dust settles, there will be adjustments to make. There is wonderful news about new hope for peace in the Mideast. It will be interesting to see how the conflict in Ukraine resolves. The Brazilian soybean crop will be a huge one. Our relationship with China will be tested soon, it seems. With our borders closed, the labor situation in the US could become interesting.

Harper just got back from showing goats at the National Western Stock Show in Denver (see her Facebook for details!).🏆 Also, BPC Jr. High basketball season is in the last week of regular season games. It's been so great to be back at the gym to cheer for our home team! Phyllis and I also enjoyed seeing Walker in competitive gymnastics in Saint Louis - WOW! 💪🏻🏅

Fall Prices:

Corn: $4.26

Soybeans: $9.90

Stay warm!

Steve

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