Data Decisions

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