Going Green

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Partners & Friends,

We are going green—solar panels were installed at both farmsteads and are generating enough power to send some back “upstream”. To avoid the chance of damage to equipment, the arrays were installed on the roofs of the barns. The solar panels have been operational for about 10 days now. We will keep you updated as to cost efficiencies.

NH3 application is almost complete, only about 120 acres remaining. The weather should warm up again next and allow us to complete it. The Hess Family Farm has been shipping corn daily to the local TriOak feed mill. They are grinding over 15000 bushels per day! We are in the midst of crop plans for next year— considering planting more corn and reducing bean acres due to current economics. Seed prices are up 10-20% from a year ago, while fertilizer bills are over 40% higher than last year. Diesel is also a real wildcard. We are trying to be smart shoppers and efficient users of inputs (as always), but the pencil is a bit sharper this year.

Volatility is still the word for world markets. Ukraine's export corridor turns on and off at the whim of Putin. Inflation is still very high. The weather in Argentina is dry. Energy costs, especially natural gas and diesel, are high. Congress will be divided for the next 2 years. The dollar remains strong, dampening exports.

Everyone is looking forward to Thanksgiving this week! The holiday is a good reminder to be thankful for all our family and friends. We are a blessed nation, community, business, and family.

Fall 2023 Prices:

Corn—5.85

Beans—13.48

Enjoy this week and appreciate the outpouring of abundance we have around us!

Steve

Happy Birthday, USA!

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Partners & Friends,

The 4th of July celebrations this weekend mean we are already to the middle of summer (and year)! The pace of farm activities is a bit easier now that we’ve completed the first cutting of hay and finished the second spraying of corn last week. I just noticed some tassels today, which is good news because it means the corn crop is catching up after a slow start. I have not seen any local sweet corn at the market yet, but it can't be far off! The Hess Family Farm is in full construction mode, with some of the remodeling already at the rebuilding stage. The last of our grain has been shipped; now we need to prepare the grain center and storage bins for new crop. The weather over the next four weeks will be critical. We currently have no excess moisture, but the corn and soybeans are looking very good. The two-week weather forecast shows chances for rain (although nothing substantial) and no extreme heat.

The commodity market absorbed the quarterly grain stocks and planted acreage reports last Thursday with downward movement. The weather over the next few weeks will offer plenty of volatility. There has been some decrease in price in the fertilizer and fuel market, and we are looking to lock in some input (fertilizer, chemicals, seed, and fuel) for the 2023 crop soon. Here in Illinois, the Democrats and Republicans both claimed victory in the Republican primary.🤔 Phyllis opted out of serving as an election judge for the first time in decades due to the unfortunate issues with her eye.😔

The family is keeping busy with vacations, camps, shows, and fireworks. This month of July will fly by with county fairs and meetings to attend.

I hope you all have a great holiday, enjoying and appreciating the freedoms we have here!

Fall Prices:

Corn—5.95

Soybeans—13.90

To read a message from Dennis, a Ukrainian farmer, click here.

Please feel free to leave comments—we do our best to reply to every single one!

Steve

2020

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Partners & Friends,

Here in this season we pause to reflect on the past year and plan ahead for the next. We are constantly asking ourselves how we can make the operation more sustainable, do more with less, be more efficient, increase our margins, determine what our core competencies are and best utilize our resources. Here are some of our thoughts heading into next year.

  • Tile—our highest yields consistently come from the ground that is patterned drained. Earlier planting, more even stands, better root development, easier harvest and less soil compaction all add up to increase the ROI 

  • Seed Beans—raising seed gets us the newest and best varieties with the most yield potential, but means weed control must be tip-top, bin space is an issue, and combine clean-out on hot afternoons is the most unpleasant 

  • Equipment Efficiency—keeping track of hours per power unit and repair cost of each piece of equipment gives information about cost to operate, when it’s time to replace, and do we need it

  • Less Tillage—part of the effort to make the land more sustainable is fewer trips, less compaction, and covering more acres with existing labor

  • Management Zones—part of the strategy of our multi-hybrid planter is investing in the parts of fields with the most profit potential and accepting the lower-yielding areas for what they are

  • Marketing—this past season reinforced that we must take advantage of opportunities to lock in profit and that the market is always right

  • Human Resources—our most valuable commodity is people—team members, suppliers, grain originators, landowners; those relationships must be nurtured and maintained

There are lots of details involved in this list that must be managed for the bottom line to be positively affected. That's what our job is-to bring everything together to allow this 150 year-old business to carry on to the next generation. We appreciate all who are a part of this endeavor that allows us to keep our dream jobs.

It appears the trade talks have negotiated a Phase One deal. We anxiously await seeing all the details on paper and signed. The general economy seems so strong with the labor marker so tight. Hopefully this next year’s major weather anomaly will be somewhere else in the world. :)

We are all celebrating this Christmas season with family and friends while enjoying all the blessings we have been given by a very generous Creator. Lindsay is due with their 4th child any day now. Ali is dog and cat sitting close to college campus. Preparing for bringing in 2020 with family and friends.

Have a Great Contented New Year!

Steve

Grateful

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Partners & friends,

Thinking about all we have been challenged with this past year, this job is still a dream job. There are several things I am so thankful for.

  • For ancestors that weren't afraid of hard work and perseverance in the face of weather, economic and social issues

  • For rural America and the peace and tranquility we are afforded in this setting

  • For the opportunities to work with this beautiful plant and animal creation every day

  • For friends and neighbors who live out loving, serving and caring

  • For  freedom of religion and the wonderful community of believers we are in

  • For healthy Christ-seeking children and grandchildren 

  • For living in a country where we openly and freely choose who will govern us

  • For a loving God who loves and forgives me every day

Here on the farm we are in the midst of office crunch time. Paying year end bills, analyzing the past years crops, choosing seed and chemicals and crop rotations for this next season, and figuring out how to do more with less this next year, are a part of the processes we go through every year at this time. Outside the office we are cleaning equipment, hauling grain, helping some neighbors finish harvest, and constantly repairing tractors, trucks and combines. Our eleven head of cattle need to be fed and cared for each day. This is also the season for seed, marketing and management meetings.

As discombobulated as world politics seem my history reading reminds me that this is the way world governments have always been. Producing and protecting food supplies have been priorities for all civilizations. Trade wars have always been present. And world leaders have always recognized that a well-fed populace is easier to govern.

This is the season for Christmas programs. School and church programs remind us of why we celebrate and proclaim great joy from the Birth 2000 years ago. A real story for the ages. Ali has completed first quarter of her sophomore year. Looking forward to some time with family and friends these next few weeks.

Steve

New Year

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Partners,

The new year is moving so quickly! We are diligently finishing up last year’s records, getting W-2s and 1099s out, looking back at what we learned last year, and making plans about what to adjust for 2019. Our office seems to be a beehive of activity with some late nights involved. Schools are all back in session but there have been several late starts and snow/ice days this past week. The official snowfall this past weekend was around 14" and more is forecasted for tomorrow. Marcus attended the Top Producer meeting in Chicago this week and brought home some new management ideas. Steve was at the Precision Planting meeting in Tremont Thursday for catching up on the latest updates in planter technology.

The government shutdown has affected us a bit. The local FSA office is closed but will reopen for three days next week; but there is very little traffic through there this time of year anyway. The soybean market is very volatile according to who-says-what about trade negotiations with China. It seems that agriculture supports a border wall but also wants a rewrite of immigration policy to allow foreign workers access to our labor market legally. Now the leadership of the house wants to take a vacation! All of this political brinkmanship is quite the show to watch. 

All children and grandchildren back in school -  at home, elementary school, or college . All the snow days are enjoyed (except for the makeup work). Lots of sledding and snowman building. Phyllis and i hope to make it south for a bit in February. 

Current prices:

Corn 3.56

Soybeans 8.54

Fall Prices:

Corn 3.68

Soybeans 9.00

Be careful in the winter weather!

Steve