April Fools

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Partners,

Growing up, on the 1st of April every year my mom would wake us up announcing, "It snowed last night!" Then there would be a pause and the words, "Aprils Fools!" Well this year the trick was on us: we received about 3-4 inches of white stuff on April 1st. It was gone the next day, but we enjoyed the beauty of it while it lasted.

On the farm we are keeping busy with hooking up our new (to us) planter, tractor maintenance, building organization, grandbaby sitting, and tree clearing. The weather has not been conducive to planting and it is actually giving the market some support. Today's farmer has proven over and over the past decade that we can put 80% of the crop in the ground in a week, so this delay isn't too serious yet, but another two week forecast of wet and cold will start getting attention. We know one of the keys to high production is early planting. 

The farm economy seems to be in a holding pattern. Our friends in the dairy industry are really suffering with low prices, and even the Wall Street Journal picked up on the issue for a front page story. We are watching the trade talk negotiations going on which looks to me like posturing and some scare tactics to let our trading partners know we are tired of giving away the farm to reach a deal. If nothing else our president does have a lot of experience making deals. Stay tuned where this one goes, and ag is usually one of the first whipping boys for retaliatory measures.

The family is doing well and we appreciate all the blessings of health and new life. Opa and Oma got to meet their 10th great-grandchild (our niece's son) this week. Alison is still in college search mode for the right fit. Our house reconstruction has begun and looks to be a longer process than we would prefer, but it'll be nice when it's done.

Fall Prices:

Corn 3.80

Soybeans 10.09

Keep in touch,

Steve

Same Kind of Different

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Partners,                   

We are keeping as busy as we want to be at this time of year.  It won’t be long until we find ourselves back in the field!

I want everyone to know that things do change here on the farm.  Here is a list of some changes we are implementing for the 2018 cropping season:

  • Per our fertility consultant’s advice, we are applying higher rates of dry fertilizer. (Producing larger crops means more nutrients taken from the soil.) This has increased our dry fertilizer cost approximately 15%.
  • We will be implementing an improved method of nitrogen application (split applying) in order to increase N efficiency and reduce nitrate runoff.
  • One result of the water quality study we have been participating in is to see how we can supply N to the plant when needed with less chance for leaching.
  • We are applying supplemental elemental sulfur to all acres with a straight spread of P and K. With fewer coal-fired power plants there is a decrease in available sulfur in the soil.
  • We plan to reduce soybean seed planting population. Research shows lower populations do not reduce economic yield. The money we save on seed is spent on inoculants and biologicals and seed treatments.
  • We are planting more full-season varieties of corn and soybeans.  This may result in additional drying costs, but will help prevent phantom yield loss in corn, and help keep moisture in the SB crop to reduce harvest loss.
  • We are using multi-mode of action herbicides for pre-plant and post-planting to help prevent weed resistance. Our biggest weed issue right now is tall water hemp. We have been told that the invasive plant, palmer amaranth, is only a county away and it is a very tough weed to combat.
  • We are moving forward with the purchase of an additional planter for soybeans. Even though this does increase our equipment cost per acre, we expect an increase in yield since we will have the ability to plant corn and beans at the same time. Research shows higher yield in both crops when planted by the first of May. This is going to increase pressure for the two-week planting window so any offers for planting assistance would be welcome!
  • We are putting sensors on our planter to give us the ability to measure soil organic matter on the go. We hope to use this data to fine-tune our management zones for our multi-hybrid planting (seeding rates and varieties). 

The planter has been delivered and we are in process of getting both units hooked up and ready. Some parts are replaced almost every year. We have also been shipping corn, and hoping our seed beans will be called for delivery soon. 

The agriculture industry is watching with great interest the trade talks with our partners and the buzz about changing the RFS (renewable fuel) standards. It has been estimated that within 5 years Brazil will grow more corn than the US. We need world trade and cannot afford to seem like the bullies on the block!  Grain markets are showing some life as the drought in Argentina hangs on. 

Family is doing well--Lindsay and Keith had their third son on March 4th. Alison is on a school trip to Germany during spring break and is still undecided about college choice. Phyllis and I have returned from a few weeks in Florida.

Fall bids--

Corn--3.70

SB--10.14

Keep in touch,

Steve

Data Decisions

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Partners,

We are in the middle of winter, reminding ourselves that we live in Illinois and winters can be harsh! Doing chores for the heifers can be brutal some days, especially when the waterers are having issues. We do have two waterers currently that we cannot thaw out. Thank goodness the temperatures are moderating and hopefully soon we can get back to normal operation.

It is still meeting season. Last week Marcus and I attended the Precision Planting Conference in Tremont to learn the latest agronomy tips and equipment available to raise corn, soybeans, and wheat. The planting pass is the most important one of the year and we are learning new things all the time about how to fine tune the process to give us a better chance of successful harvest. It struck me during the meeting how much data is digested in agriculture now, to come up with practices which will give us better chances of economic success. The technology in our multi-hybrid planter is coming of age, and the decision process regarding how to place varieties is being modified all the time. The number of tests and trials to pick which agronomic practices to implement is mind boggling. After 40+ years of farming and collecting data, I finally feel like we are getting useful information for decision making out of the time and money spent collecting the mass of information.

Also striking is the amount of money we must spend to keep up with the equipment technology advances. Our technology budget is around $10/acre/year. One of our take-homes from our data analysis is that we should be able to pencil in a payoff of a separate bean planter in three years or less. Having the ability to plant beans and corn at the same time, and planting in narrower rows to take advantage of sunlight and weed control make this decision seem like an easy one. We are also adding seed firmers to the planter which will be able to sense five things on the seed trench, on the go while planting.

Agriculture is trying to digest the new tax laws. It appears to me that we will have somewhat reduced personal taxes, while the tax rates for our corporation will be higher. We have unlimited equipment write-offs but what good is that in an environment of such low margins? The president's appearance at the American Farm Bureau annual meeting was a great PR event, but little substance. Fuel prices are slowly rising as crude oil supplies remain tight. 

Family is doing well. School is back in session for all elementary and high school students and college professors in the family. Alison has applied to several colleges of her choice. Our house had a pipe freeze and break and we have been drying out for two weeks now. Phyllis slipped on the ice and is slowly recovering from two cracked vertebrae.

Fall Prices:

Corn 3.51

Soybeans 9.58 

Steve

Last Time

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Partners,

Things are slowing down a bit at Hess Family Farm. This past Wednesday Marcus replanted, for a second time, 40 acres of flooded creek bottom. We have not had rain since the last time the creek flooded. We'll now spot plant in some drowned out areas in a few bean fields--not as bad as the corn but we'll plant to keep a crop growing in the field and keep weeds at bay. We finished side dressing NH3 a week ago and the corn fields have really responded to the opening of the ground with the anhydrous knives. We still have the potential for some good yields but the weather for the next 4 weeks will make or break the crop. Some of the lighter timber soil that struggled to emerge is showing unevenness of stand and not growing very fast or even. We got our grass hay for the heifers baled this week along with the second cutting of alfalfa. I attended the Illinois Forage Expo and entered a first cutting alfalfa sample that won its class! We have been keeping the excavator busy repairing tile lines. We are also regularly delivering corn to the local feed mill for processing into hog feed. The never ending job of spraying weeds and mowing are also underway.

The commodity market is heating up with the weather issues on the horizon--corn is at an 11 month high. The new administration stance on several issues is causing a lot of apprehension in the ag sector. Determining what the path for immigration, infrastructure funding, ag trade, and the funding for the next farm bill are looming large. It is evident that our political clout is shrinking and we must use our ammo wisely. The story here in Illinois is the same.

Family is doing well and running full speed into summer activities. There is softball, camping, college visits, summer camps, and squeezing in some vacation days all on the docket. As usual it seems summer will be over before we know it and school back in full swing.

Fall prices:

Corn 3.74

Soybeans 9.23

Keep in touch and stay cool! I'll try to update more regularly about how the weather is progressing.

Steve 

Just in Time

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Partners,

It started raining here this past Wednesday about 6:00 in the morning.  We had pulled out of the final corn field at 3:00 that morning with the corn planting completed. We've received a little over 4 inches since then. Overall the field conditions were very good to plant into, and the first corn we planted on the 8th of April is up and looking good.

We have all the bean burndown (which we put on the field to prevent weeds from growing) sprayed on the fields that we're switching over to beans, so we feel good about planting progress. We hope to resume planting later this week, weather permitting--early soybean planting has helped increase bean yields. While planting we have been repairing tile, tearing out fences, preparing CRP ground for seeding, shipping corn and soybeans, and keeping the yards mowed. The season is off to a good start.

The Secretary of Agriculture was finally confirmed on the 100th day of the new administration. Hopefully he can hit the ground running and catch up the time lost in the confirmation process. There are lots of posts to fill in the department and plenty of stress and issues to deal with in the country. We have been supporting efforts to help the victims of the tragic fires in the western states. There are 18,000 miles of fences to rebuild, 12,000 head of cattle were killed, and seven people lost their lives.

In the family we are seeing the end the of school year in sight. Alison has a full load of AP testing and completed her ACT test a few weeks ago. Harper and Finley are having school music programs and Shanna is looking forward to summer vacation from WIU. Phyllis and I were able to attend Parents Weekend and see Ali play a lot of softball--fun time. Had a great Resurrection Day celebration at grandparents' house and lots of fun hunting baskets.

Fall bids:

Corn 3.55

Soybeans 9.05

Stay safe and keep in touch! Comment and "Like" below.

Steve