Sale Time

/

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

/

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

Giving Thanks

/

Partners & Friends,

As we pause this holiday week to enjoy time with family and friends, it’s natural to reflect on all we’re thankful for. Looking back at the origins of this holiday helps us remember how it came to be. The early American settlers—the Pilgrims—endured and overcame great hardship, yet still took time to give thanks for the blessings God had bestowed upon them. Later, in the midst of national strife and division, President Lincoln declared Thanksgiving a national holiday.

Now, as a very blessed and comfortable people, we can pause to recognize how fortunate we are and take stock of all we have to be grateful for.

At Hess Family Farm, here’s a short list:

  • Family that is healthy and thriving

  • A very bountiful corn and bean crop this past year (despite limited rainfall)

  • New life, as Elisha joined us on June 1, 2025

  • A family seeking and following Jesus

  • A great employee team—shoutout to Hayden, Ryan, Chuck, Randy, and everyone else!

  • The privilege of working in and enjoying God’s creation each and every day

  • A super successful goat showing season

  • Great friends

  • Bible-believing churches

  • Our families’ heritage—the struggles and sacrifices that brought us to where we are

  • Two granddaughters thriving in college

  • Wonderful neighbors

  • Our own beef supply

  • Good coffee

  • Trees that provide shade and wood for the fireplace

  • Goat babies to remind us of the wonder of new life

  • Cousins

  • Musical gifts

  • Modern farm equipment

  • The town of Bushnell

  • Farm supply and input suppliers

  • Consultants

  • Landowners

  • Financial providers

We hope you’ll pause, make a list of your own, and truly reflect on one of the greatest blessings: Jesus! Stay warm, enjoy the snow, gather your loved ones close, and cherish those relationships.

Steve

Taking Care of Business

/

Partners & Friends,

The management team—Marcus and Shanna—along with Phyllis and me, attended the AgView Executive Business Conference this past week in Florida. It was mostly business-focused, with sessions on cost of production, US and global economics, labor management, marketing scenarios, accounting and tax strategies, land values, entity structure, and more. Here are a few bullet points from the presentations:

Path to Prosperity - Mike Finley

  • Strive for financial independence

  • Invest in appreciating index funds—stock index funds

  • Avoid financial advisors

  • Find the right teachers

Renewables and Tax Implications - Paul Neifer

  • There are lots of unknowns about 45Z, 45Q, and SAF

Farmland Investment and Fractal

  • 50% of Brazil will be out of its climate zone by 2030

  • Illinois has some of the lowest volatility farmland in the world

  • Some people are building their future—others are waiting for the future to impact them

Farm Economics and Trends - Chris Barron

  • Lenders are very concerned and cautious with this ag downturn

  • Know your cost of production

  • Family dynamics and communication are key areas

  • Return to management spread last year was $33/acre to $287/acre

Putting the Odds in Your Favor - David Kohl

  • Economics are overpowering the green movement in Europe

  • Will your operation be sustainable without government subsidies?

  • AI is transforming everything

Labor Management - Panel

  • What is your culture?

  • Define your core values

  • Know your team, know their lives

The ag economy will come out of this economic cycle in 3-5 years. These cycles are predictable. The US is now definitely the second worldwide supplier for soybeans, and that same distinction could soon apply to corn. The new administration is going to create a lot of dust, and until it settles, there are many unknowns. Unless the economies of China and India address climate change solutions, the other economies of the world will not make much of an impact. There has been a nice recovery in commodity prices—not great, but closer to covering the cost of production.

We are so thankful the weather has moderated. This time of year seems to be the dark before the rising sun. The warmth of the south is a nice break from the cold. Harper has also started teaching goat showmanship classes!

Fall 2025 Prices:

  • Corn: $4.28

  • Soybeans: $10.13

Steve

Winter Work

/

Partners & Friends,

We at the Hess Family Farm are busy with winter tasks that tend to be a bit monotonous and repetitive. Over 20,000 bushels of beans were delivered to Beck’s Hybrids plant in El Paso, Illinois, for processing into seed. We will likely plant some of that very same seed this spring. The beans yielded and stored well. The corn hauling is down to the last (but largest 😬) bin. There have been many full days in the office finishing up accounting for 2024, getting ready for tax preparation, ordering inputs for 2025, engaging in short- and long-term financial planning, and attending various meetings offered by suppliers and consultants. This cold January has made keeping everything thawed out and operating a bit challenging. We can't help but remember how difficult this kind of weather was back when we were milking cows! We are also trying to plan for changes in the next crop year to bolster the bottom line. These are always tough decisions! What will the weather be like? What will impact market prices? How will interest rates trend in the months ahead? It seems like 2025 will be challenging for the farm economy overall, but we are glad that the January crop report was a bit bullish.

The new administration in D.C. is off and running. We pray for wisdom and fiscal responsibility. When the dust settles, there will be adjustments to make. There is wonderful news about new hope for peace in the Mideast. It will be interesting to see how the conflict in Ukraine resolves. The Brazilian soybean crop will be a huge one. Our relationship with China will be tested soon, it seems. With our borders closed, the labor situation in the US could become interesting.

Harper just got back from showing goats at the National Western Stock Show in Denver (see her Facebook for details!).🏆 Also, BPC Jr. High basketball season is in the last week of regular season games. It's been so great to be back at the gym to cheer for our home team! Phyllis and I also enjoyed seeing Walker in competitive gymnastics in Saint Louis - WOW! 💪🏻🏅

Fall Prices:

Corn: $4.26

Soybeans: $9.90

Stay warm!

Steve