Farm Forward

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Partners & Friends,

Yesterday I attended a farm meeting at an operation similar to ours, Strom Family Farm in Knox County. I really appreciate the transparency they shared regarding the results of this past season’s on-farm trials.

What Worked:

  • Low population soybeans

  • High population corn

  • Generic fungicide

  • Applying ½ rate P in a band

  • Applying Holganix 800 as close to planting as possible

What Didn’t Work:

  • Green Lightning

  • Skipping fungicide

There was also a good ag economic report from Jim Wiesemeyer and former trader Tommy Grisafi:

  • Lots of disruption in DC (not that we didn’t need it 😬)

  • Crop insurance subsidies are the new Farm Bill

  • This downturn is likely to last a few more years

  • We’ve entered a new era where government support will be part of the farm income puzzle, like it or not

There was a lot of good, open sharing of thoughts and ideas for the future.

Back on Hess Family Farm, we are shipping grain, maintaining equipment, finishing the last NH₃ application, and finalizing crop input details, along with wrapping up the last few farm meetings. 😏 Most of the utility work for the shop update is complete.

We need to make crop insurance decisions by the end of next week. We’re taking delivery of seed and chemicals and finalizing written plans for spring operations. We’ve also received some very nice rain over the past few days, helping replenish soil moisture.

It is now nearly impossible to get pricing for side-dress NH₃. Fuel prices are up about 20% (fortunately we did secure some laid-in and booked inventory), and as energy prices rise, corn and soybean prices are following, although not at the same pace.

We are still waiting for 45Z guidance—hoping for book-and-claim. 🙏 Meanwhile, since FSA is reorganizing its software programs, we cannot proceed with farm reconstitutions or some farm program details. So much uncertainty!

Family life is busy. Volleyball and basketball seasons are complete, one more gymnastics competition remains, and FFA judging season is in full swing. Ali has moved into a new place in Asheville, and we squeezed in a brief visit to Hidden River before Phyllis’s knee surgery next week. Wisconsin is eagerly anticipating the end of snow season and the beginning of baseball and soccer season.

Fall Prices:
Corn — $4.50
Soybeans — $11.12

Comments and likes are welcome! 🤩

Steve

More Meeting Thoughts

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Partners & Friends,

Here is a list of takeaways from the meetings we attended over the past few weeks.

AgView Solutions Executive Business Conference
Ag management and consulting

  • Who are the five people you spend the most time with—and do you respect their opinions?

  • Your attention is the most valuable thing you own.

  • 2026 plans: no capital expenditures; focus on cover crops and custom grazing; market more aggressively; more corn-on-corn; rent decreases will be hard to come by.

  • You can’t delegate what you can’t define.

  • What perspective do you need to change, and where do you need to plan better?

  • AI: get familiar with it.

  • Stay close to your lender, insurance agent, and marketing consultant.

  • Japan may be heading toward a financial crisis.

  • Productivity increases are happening—AI isn’t the only reason.

  • Government assistance likely won’t help ag much; it may just prolong the pain.

  • Global corn demand is strong.

  • Success in life comes from your ability to manage the margin of greatness.

  • Living is what we get; life is what we give.

  • Strip-tillage allows for up to a 50% fertilizer rate reduction without economic impact.

  • Equipment technology is advancing fast: spot spraying, smoke spraying, and improved corn seed placement.

2026 Illinois Soybean Association Summit

  • The current crop support structure tilts benefits toward southern producers.

  • The way Farm Bill issues were addressed in OBBB has further fragmented the industry.

  • We are where we are—where we go from here is what matters.

  • Cover crop microbes can remain active at temperatures as low as 15°F.

  • Phosphate prices are expected to be higher in 2026 after the next few weeks.

  • U.S. farmers are paying a premium for inputs due to tariffs and global politics.

  • NH₃ prices should soften in 2026 if global fundamentals align.

  • Brazil has 70 million acres available without rainforest destruction.

  • Land costs in Brazil are minimal compared to the U.S.

  • Government supports are pushing marginal farmers to produce surplus crops, distorting markets and driving up land rent and price supports.

  • On average, there are now 10 fewer days for fieldwork between March 15 and May 30 compared to 20 years ago.

  • What can I do to hand this off better?

Holganix

  • Reducing nitrogen usage helps maintain soil pH longer.

  • 72% of global GDP now operates within a regulated carbon market.

  • The U.S. will need 20% more energy in the next five years to power data server farms.

  • Microsoft purchased 47 million tons of carbon credits in 2025.

  • Farmers can store up to 5 tons of CO₂ per acre, valued at roughly $30 per ton.

  • Estimated farmer share is about $70 per acre.

WHO WE ARE

Enough downloading for now—back to winter farm tasks: keeping livestock warm and watered, office work, and planning time for 2026.

Keep in touch,
Steve

Meeting Season

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Birthday Fun

Partners & Friends,

Meeting season has arrived. This week was the Precision Planting Winter Conference in Tremont. PTI Farm 2025 results, along with new planter and sprayer technology, were the main announcements. Corn seed can now be placed in the seed trench tip-down at 10mph! Sprayer technology has also been updated to target only weeds instead of broadcasting across the entire field. A key message reminded us that even in these tough economic times, it’s important to keep perspective on why we do what we do and to remember how generations before us persevered.

The past few weeks have also meant more time in the office, along with a tile repair project and equipment maintenance. Year-end accounting, tax preparations, and data analysis remain the most important office activities. A perennial wet spot in the field had some tile repaired and additional tile added. In the shop, routine maintenance and preparing the semis for seed and bean delivery next week were the headliners.

Disappointing news came out of DC concerning ethanol and biofuels this week. It seems big oil has the president’s attention. Surprisingly, even the recent shadow fleet capture didn’t cause oil prices to rise. The threat of another government shutdown could also disrupt FSA offices again. If some employees are considered non-essential, why do we need them in the first place?

On the personal side, birthday parties, basketball games, volleyball games, trampoline parks, goat showing, and Christmas celebrations are keeping us busy. Phyllis is still seeking approval for knee surgery. And with the winter cold and snowstorms, we have plenty of reason to stay inside—but we do live in Illinois, so we can expect weather like this! 🙂

Fall Prices:
Corn — $4.23
Soybeans — $10.44

Stay warm!
Steve

Sale Time

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Partners & Friends,

We just completed a successful first-ever online goat sale here at Hess Livestock. There was a lot of active bidding, and the goats are headed to many different places, including Wisconsin and Iowa. We’re hoping for a great show season for everyone and for more opportunities to share superior genetics with others. The next show is in Denver next week. Show your stuff, Harper and Abbott!

This is the time of year when the winter doldrums tend to set in. Cloudy, wet days aren’t very uplifting, so we’re focusing on office and shop projects. Year-end analysis, tax filings, 2026 budgets, input ordering, project planning, and overall business management are all front and center. We’ll be attending several meetings this month and next that should provide useful analysis and data to apply on our own farm. The slower pace of this season can also be refreshing and renewing—for both our souls and our personal goals.

There’s no shortage of national events keeping the news outlets busy. Protecting interests in the Western Hemisphere seems to have taken on a larger role in national defense. Commodity markets remain in very tight trading ranges. Index funds are in a period of serious rebalancing and reweighting. History and perspectives surrounding the Capitol riots appear to be in the process of being rewritten, with some factors minimized or erased. Perhaps the uncovering of major fraud schemes will bring more accountability to government. Illinois legislators are also gearing up for the 2026 legislative session.

Phyllis’ knee surgery is on hold while we wait for dental clearance. College classes are restarting, and first-semester results have been very positive. We’re still trying to wrap up Christmas visits with our kids. It was a wonderful holiday season celebrating the birth of Jesus and the relationships we cherish.

Fall Prices:
Corn: $4.31
Soybeans: $10.36

Steve

'Tis The Season

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Coast Guards Cadets

Partners & Friends,

Only one week until we celebrate the birth of our Savior! After some snowfall—which, fortunately, we only had to push once—the weather is warming, and it appears there will be no white Christmas. Historically, central Illinois only has about a 25% chance of that anyway.

We are hauling corn as fast as the elevators will allow. Yesterday we managed only three loads to TriOak. The shuttle is closed today and tomorrow because they are full and having difficulty scheduling trains. The next two weeks will bring reduced days and hours at all facilities.

Meanwhile, the office crew is putting in long hours handling year-end accounting, finalizing 2025 crop production reports and analysis, and laying the groundwork for next season. We are forecasting margins similar to what we experienced this past year (slim) and “normal” weather—though long-range forecasts are a WAG anyhow. 🤷‍♂️ The goat barn is prepping for a goat sale, and the peer group met this week.

We are eagerly anticipating a Santa Claus rally in the commodity markets. China appears to be slowly buying our soybeans. The amount of farmland up for auction this winter seems staggering. The Illinois Farm Bureau annual meeting was history-making—the first time I can recall a president serving only one term. 🫤 And our national economy must be doing well, with air travel setting records.

We anticipate a quiet Christmas here on the farm, with some family gatherings after New Year’s. Phyllis is dealing with some knee discomfort. Girls’ basketball season is in full swing. And we pray for peaceful, silent nights. 🙏

Fall 2026 Prices:
Corn: $4.29
Soybeans: $10.36

Enjoy the season and celebrate the true meaning of Christmas!

Steve