Relationships

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Partners & Friends,

We are wrapping up 2022 and spending time counting our blessings of family, friends, business partners, neighbors, and team members. Hoping you are all doing the same. We had our annual meeting with our crop consultant to review and reflect over what we’ve learned the past year—hopefully more on that soon. The recent weather has been causing some extra chores and challenges.

May you all have a blessed and rewarding Christmas holiday involving much time for deepening relationships. That was a big part of the message of the birth we celebrate this season.

We appreciate all of you and look forward to a bright and glorious 2023! Enjoy and celebrate the love and blessings we have.

Steve

Just Kidding

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Partners and Friends,

It has been some exciting and rewarding times around here. The goat project is exploding in size. Last summer's vigorous AI breeding schedule has resulted in some great birthing experiences. We had 2 sets in October and 2 sets the week of Thanksgiving. All are healthy and doing terrific! 2 more sets are due the week of Christmas. What fun it is to watch the exuberance of youth and wonder of creation. The pens are getting full and decisions now need to be made who gets to stay around for show season.

We were occupied last week installing 80 acres of tile before the weather turned wet. The team and I hope to do another 160 acres this winter, weather permitting. If our land base stayed stable, we probably wouldn’t run out of tiling projects for the next 7 years. We have a list of priority fields and hope to eliminate replanting wet spots soon. The price of material has softened a bit, but is still 50% higher than a few years ago. The tile supply situation is a perfect example of supply logistics recalibrating. We have also completed all NH3 applications. The plan for 2023 is for more corn acres than beans, due to economics and some strategic field reorganization. Time spent in the office has been at a premium over the last several weeks while figuring and analyzing past years’ outcomes and changing some practices for the future—more on that soon. 

The world is still full of black swans. The Ukraine situation remains in a state of turmoil and probably will for a long time. Note this chart; the world energy situation has some resetting to undergo that will not be comfortable for some. We in the United States are truly blessed with natural resources. 

The family is staying quite busy during this holiday season. The Trinity "White Christmas" program is this weekend. The 2022 Hess Family Farm Team Christmas party is also now in the books! Pop question: what year was our farm founded? We are truly celebrating the reason for the season and reflecting on our abundant blessings.

Here is an update on the Ukraine situation from MCAgronomics:

“The situation in Ukraine is continuing in much the same pattern. The Russians are failing on the battlefield in most locations but doing great damage to the electrical grid, natural gas distribution, and drinking water systems. Since the Russians have not been able to gain or hold ground on the battlefield, they are focusing on freezing/starving the civilian population. The will of the Ukrainians appears strong and the ongoing discoveries of murder, torture and other war crimes strengthens their conviction. The Russian population appears to be becoming more and more displeased with Putin’s war making but who knows where that will lead.

The “mud season” is ending and the ground is freezing which will allow a return to battlefield mobility and will favor the Ukraine tactic of bypassing established Russian defensive positions to attack supply lines in the rear.”

2023 Fall Prices:

Corn—5.68

Soybeans—13.74

Soak up this wonderful season!

Steve

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

Thank You

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Partners & Friends,

We finished harvest on Saturday. It was a great season with no major breakdowns, spills, or injuries. We also ate very well!

A big thanks goes to…

  • Compeer for Food Truck Fridays + a personal delivery one Friday

  • West Central FS for the pork chops delivered

  • TriOak Foods for the pork loin delivered

  • Ryco for ribeye on a rainy day

  • Shanna for some great food in the field (especially the beef and noodles)

  • Phyllis for delivery services multiple times

Harvest is complete! The corn crop yield was some of the best ever, despite the sparse rain from mid-July until now. The bean crop was good as well—right at trendline. We have a lot of projects that were set aside during harvest to keep busy with now. The crew was great this year! We greatly appreciated our third semi when hauling the (more than ever before) bushels. There are creeks dry now that have, as far as we remember, never quit flowing previously. It is recommended to not apply fall NH3 until getting some rain and moisture back in the ground.

The Mississippi River is at record low levels in Memphis. Bean price is terrible due to light barge loading and small loads of fertilizer and supplies coming from the north. The war in Ukraine and winter energy requirements in Europe are causing market uncertainty. Why are we using our strategic petroleum supply when this is not a national emergency? Diesel supplies are at their lowest levels in decades—only a 25 day supply. A lot of good it does for President Biden to plead with OPEC to increase supplies while they are already having record profits…🙄 And him getting involved in the railroad strike to have it delayed until after the election…how was that in the public interest?

This upcoming weekend is Cora’s final volleyball tournament, Nationals in Council Bluffs, Iowa. We look forward to watching her win! Lindsay and family also had a great harvest week here on the farm; apple cider was made! We are excited for the family weekends and holidays to be celebrated soon. Phyllis’ recovery is going as well as can be expected.

Current Prices:

Corn—6.58

Soybeans—13.16

Stay safe,

Steve