Profit Tips

A Big Future for Texas Dairy

Fri, 03 May 2024 20:42:21 GMT

Head to the Lone Star State, and everything is bigger, or so they say. That doesn’t only refer to big hats and big hair, it also applies to dairies, as the average size in the Panhandle hovers around 4,000 cows.

Beyond cow numbers, the theme of growth is consistent, although for some operations that doesn’t necessarily equal milking more cows. Many producers plan to increase cow numbers, while some share growth revolves around efficiencies.

The growth Texas has seen in the past two decades in terms of milk production is noticeable. Jennifer Spencer, AgriLife Extension dairy specialist and assistant professor in the Texas A&M Department of Animal Science, says Texas produced 1.65 billion pounds in 2023.

According to Juan Piñeiro, assistant professor and Extension dairy specialist with Texas A&M AgriLife Research and Extension Center, the Lone Star State will continue to increase cow numbers and milk production, especially in the Panhandle, over the next five years.

“When business is good, dairies continue to expand,” Piñeiro says. That’s why we have seen an increased rate of consolidation in the dairy industry, especially in the past 15 years in the U.S.

70% of Cows Live on 5% of Dairies

Net profits tend to be lower in smaller herds, Piñeiro points out, which is why 70% of the cows in the U.S. live on 5% of the dairies.

“This certainly holds true in Texas,” he says. “This statistic will continue to grow.”

But to grow, processing plants must also expand. With more than $7 billion in planned processing investments in the pipeline, including in states such as Texas, growth
is promising.

Spencer says four processing facilities are just opening or under construction in the state, which could increase demand for Texas milk:

Cacique Foods, a cheese plant, opened in May in Amarillo.
Great Lakes Cheese Plant in Abilene is scheduled to be completed in late 2024.
A milk processing plant in San Antonio to support H-E-B is under construction and scheduled to be completed in summer 2025.
Phase 1 of a Lubbock-based Leprino Foods cheese plant is scheduled to be completed in early 2026.

Piñeiro says it is difficult to predict what the future of Texas dairy will be with all the challenges facing dairies today.

“Although I do think there is room for growth in Texas with all the upcoming processing plants,” Piñeiro says, adding he believes most of the milk to fill the upcoming processing plant needs in the state will come from Texas dairy producers, but some might come from neighboring states such as southwestern Kansas or eastern New Mexico.

Labor Costs Eat into Profits

With oil industries, among others, competing for labor, finding workers is also a challenge for Texas dairy producers. This has led some to incorporate technologies and automation to reduce labor needs.

Although Tom Alger, one of the owners of A-Tex Dairy in Friona, Texas, says his dairy has fared well with labor. He says their challenge with labor has been the overall costs it takes to pay for workers.

“That’s inflation, though,” he says.

Originally from Chino, Calif., Alger and his family moved to Friona in 2007. The family decided to move east after the southern California dairy they rented was sold. Alger and his brother Ray went into partnership together and built a 3,200-cow dairy in the Texas Panhandle to provide an opportunity for the future generation to dairy.

“We have a larger dairy than I ever dreamed of,” Alger says, adding that the operation is in the process of slowly purchasing his brother out.

With God’s blessing, he says dairying has been mostly successful for them. They now milk 5,300 cows and continue to look at how to improve efficiencies to sustain the family dairy operation.

“We’ve gotten a little bigger in terms of cows and land, and we will see where the next generation goes,” Alger says, adding that they currently farm with his son Derek and his nephew Jeff.

Water Scarcity Presents a Hurdle

While Texas has more than doubled its cow numbers in two decades, the biggest challenge to push the needle and continue the steady growth curve is water scarcity. Piñeiro says this is the largest hurdle facing producers in the state.

“The Panhandle is a semi-desert, with roughly 12" to 18" of precipitation a year,” he says. “Improving water efficiency with the use of new irrigation technologies, drought-tolerant crops, hydroponic systems and management practices considering soil health, among other strategies, will be key in the future.”

Water was an issue when Alger moved to Friona in 2007, but now he says it’s a major challenge.

“The wells’ average flow rate is 400 gal. per minute, and today they might get 150 to 200 per minute,” he explains. “I’ve got some wells holding, while others are dropping quickly.”

They have plenty of water for the cows, but when it comes to the feed side of the equation, Alger says that is another story.

“It’s obviously a concern every year,” he says. “We look at what water we have available before we make the decision what crop go into the ground.”

Combating water issues, A-Tex Dairy grows fewer acres of corn and more drought-resistant crops, such as sorghum or wheat.

“Double cropping is not an option anymore,” he notes.

They own 3,500 acres and rotate crops to help feed their cattle. He says they’ll likely allocate 900 acres for corn silage this year.

Factor in limited rainfall, especially if you look at the past two summers in the High Plains area, and it is no surprise water is a main concern for its producers. A-Tex Dairy works with neighboring farms to purchase additional feed, and Alger believes they are well positioned for their 2025 feed supply. In addition, the dairy feeds a lot of gluten and distiller grain, along with some cottonseed.

Beef-on-Dairy is a Blessing

One area that has been a blessing for A-Tex Dairy is beef-on-dairy calves. The family started dabbling in this alternative profit source seven years ago, and for the past four years, the majority of their cows have been bred to sexed semen or Angus.

“We have very few Holstein bull calves,” Alger says.

They retain the beef-on-dairy calves at different weights.

“We sell some at 450 lb., some at 750 lb., and we retain ownership on some all the way down to the kill floor,” he adds.

Strong beef-on-dairy prices have helped keep the dairy in the black for the past couple of years.

“Milk certainly hasn’t done that,” Alger notes. “Right now, beef-on-dairy has been by far the most profitable for our operation.”

Looking to the future, Alger says they plan to start hedging prices for their beef-on-dairy calves.

“We need some protection because they are worth too much right now not to protect the high prices,” he says.

Another profit opportunity A-Tex is looking into is carbon. Alger admits they have had a couple of offers, but being a drylot facility, the offers aren’t as enticing as some of the modern dairy facilities.

“We are still exploring our options,” he notes. “I know there are opportunities out there. We are generally not the first to jump on something but typically not last either.”

This holds true with investing in technology, as Alger says they, of course, expect a return on investment when incorporating any technology into their dairy.

“Our focus is improving efficiencies,” Derek Alger explains. “We utilize EID tags and FeedWatch and are looking to incorporating a monitoring system.”

Producers have taken a hard hit with falling milk prices in 2023. Spencer says the uniform milk price fell from $23.68 per cwt in 2022 to $18.98 per cwt in 2023. The price of cheese averaged about $2 per cwt below both of those.

At the end of the day, Alger thinks dairy is still a good industry to be part of and says he believes, at this point, 2024 will be a decent year, especially considering feed prices are significantly lower than last year.

While there are several dairies in Texas that are positioned to grow in terms of cow numbers, Alger isn’t planning to grow his herd. For now, they will continue doing what they do best, which is striving to produce the most efficient milk possible to help set the farm up for the next generation of dairy farmers.

These Farm Kids Had the Best School Absent Note Excuse

Thu, 07 Sep 2023 20:01:01 GMT

Being a farm kid means that you rise with the sun and head out to the barn to help with chores before school starts. It also means returning home after school to help with evening chores. This is especially true if the farm kid lives on a dairy farm. After all, dairies operate 24/7, 365 days a year.

When kids headed off to school earlier this year, many farm owners quickly realized how much extra help their farm children were. With harvest approaching, the to-do list grows longer and finding extra farm hands is easier said than done.

This was the scenario the ten Hoeve family found themselves in during last year’s silage harvest. Gerben and Julie ten Hoeve’s oldest son, Ian, begged to miss a few days of school to help chop corn on his family’s 650-cow dairy farm earlier this week.

“It is something he looks forward to all year long,” Julie says.

So, when Julie called her son’s high school to report Ian being absent, she worried about what the school would say. The school’s response eased her mind.

“I will mark Ian absent tomorrow for farm work. Thank you for all you do to keep the U.S. running. I appreciate it,” is what the school secretary wrote.

Ian has his own YouTube channel, Automated Farmer (www.youtube.com/c/AutomatedFarmer), where he highlights videos of working on the family’s dairy farm in Waverly, Iowa. From mowing alfalfa and hauling manure to showcasing their newly complete dairy calf barn, the eager teenager lives and breathes everything farming.

It truly is great when school administration and teachers not only understand, but appreciate all the work farm kids do away from the classroom. Students often can miss school for sports, which teaches valuable lessons. But truthfully, it is hard to duplicate the life lessons learned working side-by-side with older generations on a family farm.

This is why I smiled big when my 16-year-old daughter, Cassie, told her basketball coach earlier this spring that she needed to miss practice/conditioning because “the guys needed her help with chopping rye.”

Despite living in the home of John Deere, with thousands of acres of corn all around us, my kids are the only farm kids that attend their school. So, it delighted us when Coach Pav told Cassie this was the best excuse he’d ever heard and excused her from missing basketball practice.

So, here is to the farm kids whose learning goes far beyond the classroom, it stretches to the corn field and to the dairy barns. Thank you to those teachers and staff who realize to feed a nation takes a team. And often farm kids are a huge part of that team.

Bomb Cyclone: Not Helpful in Ending California's Drought

Tue, 10 Jan 2023 18:33:00 GMT

The bomb cyclone has sucker punched California—flooding homes and roads and knocking out power. While many farmers have prayed for rain to end the ongoing drought plaguing the state, a leading expert says that the bomb cyclone will not end California’s persistent drought.

“The short answer is no, this bomb cyclone will not end the drought in California,” Dr. Thomas Borch with Colorado State University says.

Borch shares that consistent rain patterns throughout the year are needed in order to end the drought facing the Golden State.

“Not these fast and heavy storms,” he says. “Also due to the increase in temperature, we see higher evaporation rates than previously and combine that we are rapidly increasing the demand for water and you end up with water scarcity.”

According to the U.S. Drought Monitor, the downpours facing California are expected to bring short-term relief. A month ago, around 85% of the state was in the midst of a ‘severe drought,’ which has fallen to about 71% since the bomb cyclone made its way to the Golden State.

Richard Heim, a meteorologist with the National Centers for Environment Information says, “We need this stuff to happen this month, February, March, April — every month to really build up the snowpack, fill up those [water] reservoirs and knock down those [precipitation] deficits. “Unfortunately, a lot of it is coming too fast, too heavy.”

Borch agrees with Heim, adding, “Most stormwater runs into small bodies of water like creeks and streams, although it will likely head to whatever water source is close by,” he shares. “Eventually, that water will travel to other larger bodies of water, like river, lakes, or oceans.”

Broch shares that currently a lot of focus is set on trying to treat and reuse stormwater.

California Farmer: The Worst We’ve Ever Experienced

Located in Lodi, Calif., 40 miles southeast of Sacramento, dairy farmer Hank Van Exel says that the main cause of drought is that California has not built any dams.

“Especially on the Cosumnes River,” he says. “It runs wild. This dam was voted on years ago, but never built.”

Van Exel says he bets 75% of the extra precipitation that comes out of the “Bomb Cyclone” will go to the ocean.

As of Monday afternoon, Van Exel says that terrible winds up to 60 mph have taken hay barns and he just learned that a neighboring dairy’s freestall barn is gone.

“They are saying that area might have to evacuate,” he says. “A lot of the plastic of the silo pits have been blown away and it got 3 inches of rain on it.”

Last week Van Exel received 10 inches of rain and was out of power for 36 hours but shares that so far, he has not had to dump any milk.

“By far this is the worst we have ever experienced,” Van Exel says. “The problem is that this storm is relentless. We get a 6-hour break and then you lose everything you gain the next night.”

Recession or Not: The Consumer Has Reached Their Breaking Point

Fri, 11 Nov 2022 17:39:40 GMT

Whether we are in a recession or not is to be determined, but I think we all can agree that we are feeling the impacts of a looming recession. Tanner Ehmke, a leading dairy economist with CoBank, says that we are not in a recession—not quite just yet.

“We’re going to be in one, probably soon,” he says. “That’s mixed news for those of us in agriculture. We want a strong consumer to buy our products. At the same time, we’re also competing for labor.”

Speaking of consumers, Ehmke says they are feeling the pinch every time they walk into the grocery store. The consumer has hit the level of how much price absorption they can take.

“We’ve hit that level,” Ehmke says. “The consumer is not going to take any more cost increase.”

The savings that the consumer was able to accumulate throughout the pandemic has dwindled thanks to higher fuel, higher rents, higher groceries and more.

“Through higher costs of everything now, those savings have been depleted,” Ehmke says. “Credit card debt is now going up. And that’s an indication for a lot of people that they’ve run out of cash.”

With all that being said, people no longer can absorb higher costs. Ehmke says that lighter foot traffic is seen in some grocery stores, while discount retailers have seen a significant increase in foot traffic.

“Even your wealthier consumers have decided that they cannot afford cost increases anymore,” he shares. “For their shopping, they’re trading down from branded products to private label store brands. They’re trading down from premium products to lower-priced commodity products. After they’ve done all of those things -- shifted retailers, shifted from brands to private label, shifted to commodity versus premium -- the next step then is for them to reduce how much volume they buy.”

Mike North, president with Ever.Ag, concurs with Ehmke and says that the looming recession is naturally top of mind for everyone. North also says that while consumers are very notably showing changes in spending, the dairy case has performed very well relative to other protein categories.

“Moreover, down trading in the food service universe can still include a lot of cheese as fine dining frequency is substituted with quick casual and delivery,” North says. “However, this may come at the expense of other fats/creams.”

Ehmke says it is going to be a balancing act between the farmers and processors going forward.

“You simply can’t pass that cost on to the consumer anymore,” he says. “It’s just going to compress margins.”

North says yes, the recession is a big story and advises producers to be mindful of normal seasonal demands that will taper into the new calendar year.

Premium Alfalfa Hay Delivered by Amazon Prime

Mon, 22 Aug 2022 16:37:12 GMT

According to EarthWeb, Amazon reports that its Prime version had more than 200 million members in 22 countries in April 2021. From accessories to clothing to toiletries, households can get just about anything with one click through their Amazon app.

Dairy farmer, Steve Maddox knew his wife loved Amazon. Recently he also found a newfound love, as he began utilizing their shipping service. Earlier this month, an Amazon Prime truck hauled premium alfalfa dairy hay from his Logan, Utah hay ranch to his Riverdale, Calif. dairy farm.

Amazon worked with a dispatcher who then was able to fill the truck with Maddox’s milk cow alfalfa hay. Although, the load of hay didn’t qualify for free shipping.

“Amazon Prime back hauled 21 tons of hay from our hay ranch to our dairy,” Maddox shares. “The cost of shipping was $1,250.”

He says his hay trucking cost is down from its peak in December 2021, at around $2,000, but up considerably from 8 years ago.

“The cost of trucking from Utah to California back then was between $900 to $1,000,” he says.

Maddox Dairy milks 4,000 cows, with an equal number of heifers, and farms 1,600 acres of almonds and 3,00 acres of wine grapes, as well as cropland to supply feed for their cattle.

According to Maddox, Amazon Prime has many orders heading east but lacks loads coming west.

“They look to backhaul,” he shares.

Delivered in a straight truck, Maddox says they use a forklift and a ramp to underload the 1,400 lb. bales.

“We have 2,500 tons of hay that will get moved from Utah to California,” Maddox says. “That is 120 loads that are trucked from June to the first part of November. Sometimes we will store the hay in Utah and move it west when we need it.”

Amazon is known for its quick deliveries and when the big semi-truck showed up, Maddox didn’t question what his wife had ordered and realized there are many benefits to holding a Prime membership.

As Farmers Face Growing Stress, How to Navigate Mental Health Concerns

Fri, 20 Nov 2020 05:57:04 GMT

Farmers and ranchers continue to weather the extremes of 2020. From drought, derecho and wildfires, to a sudden loss in demand for dairy, 2020 is proving to be an obstacle course for agriculture.

“Probably most sectors of agriculture like crops, corn and beans and cattle and hogs are all facing added stress,” said Tim Homan of Rabo AgriFinance during Farm Journal Field Days in Iowa.

The financial frustration is mounting and bleeding over into mental health concerns.

“Farmers, even in best times, have a very high rate of suicide,” said Deborah Reed, with the University of Kentucky , during the Farm Journal Field Days hosted a mental health and managing stress on the farm discussion. “We don’t know what this particular time is going to bring, but we do know there are a lot more calls being made to the hotlines right now. So, we need some intervention.”

Reed says it’s not just farmers and ranchers on the frontlines feeling the impacts of added stress. She says entire farm families are feeling and experiencing increased pressure and concerns right now.

“We are hearing from a lot more farmers reaching out for help in various ways, and not just from the farmers themselves, but from their family members,” she adds. “It’s also children. We can’t forget those children on the farm.”

Reed says her biggest advice for families enduring added stress and trying to wade through all the uncertainty—take care of yourself first.

“As stress builds up, you not only have those physical consequences, but you’re not able to make decisions or you make poor decisions that affect your bottom line on the farm,” says Reed. “You have a chronic anxiety which affects everyone around you, you may actually exhibit clinical depression. And if it keeps going down, you could begin to have feelings of hopelessness. Maybe you’ve even thought of harming yourself. These are very serious outcomes.”

Those serious outcomes are what the American Soybean Association (ASA) and the United Soybean Board (USB) are trying to help prevent through a new effort called #SoyHelp.

“Our #SoyHelp campaign for farm stress is an initiative that really came from this COVID pandemic where we saw a clear connection, and our farmers indicated that they were experiencing high levels of stress,” says Wendy Brannen, senior director of marketing and communications for ASA.

ASA developed the Soy Help Farm Stress Initiative from a COVID task force the organization put together. As farmers gave input on how the pandemic was impacting them on a personal and professional level, Brannen says it became clear ASA needed to take action.

“We really wanted to go ahead and get these resources out there because of COVID and the stress that people were clearly experiencing,” she adds.

Brannen says seeing the need, the group created an inclusive campaign to help farmers reach out for help.

“Certainly, we wanted things that were specific to farmers, but we also wanted state specific resources,” she says. “We have about 30 soybean producing states that are really active in growing soybeans, and we wanted resources for them. We wanted national resources for the suicide help lines and those sorts of tools, as well.

From social media campaigns to news stories, Brannen says the conversation is continuing with the hashtag #soyhelp. It’s an evolving conversation Reed hopes will continue down the road as it’s important to recognize the signs of stress and know when it’s time to seek help.

“If you’re looking at your family members or your friends, I think anything that just seems out of character for them over a period of time,” says Reed about recognizing the signs that someone may need help. “Everybody has an off day, but if you notice that this is becoming a regular thing, and they have panic attacks or express increased anger or let the farm run down, those are real signs of saying, ‘Hey, how are you doing? Are you okay? Because this is a tough time for all of us.’ Giving them an opening like that, to mention it, that’s just a good way to open a conversation.”

Reed says having those candid conversations with the goal of opening up about mental health, could also help remove the stigma around mental health in agriculture for good.

Listen to the full discussion about “Mental Health and Managing Stress on the Farm”, visit Farm Journal Field Days .

Farm Journal Field Days: Learning, Networking and Entertainment!

Wed, 11 Nov 2020 06:26:28 GMT

We’re excited to share more about Farm Journal Field Days – a new farm show designed to provide farm and ranch leaders across America with three days of virtual discussion, tours, solutions, entertainment and information from key industry leaders that is accessible from anywhere.

Register Now!

Farm Journal Field Days has been designed to provide everything you need during these challenging times:

Education

When it comes to farming, the best pool of agriculture knowledge is fellow farmers. Field Days has brought together an unparalleled lineup of expert farm and agricultural leaders in the livestock industry in a series of virtual learning pavilions where you can hear the latest trends and solutions.

See the agenda.

Technology & Innovations

You will have the opportunity to virtually connect with suppliers to discover the latest farming technologies to increase productivity and profitability. Our Expo Hall will give you access to the leading products, services, technologies and machinery.

Networking

You will be able to meet and exchange ideas with your peers via our interactive beer garden sessions. You will also have the opportunity to question our expert panels during live Q&A sessions, and of course, there will be a number of exhibitors on-hand to answer your questions throughout the show.

Entertainment

Along with our virtual pavilions and Expo Hall, we have created a grand finale, The #FarmON™ Benefit Concert:

Headlined by Grammy-nominated country artist Lee Brice
Performances by Justin Moore, the Peterson Farm Brothers and more
Proceeds benefit The National 4-H Council
The concert will be free to watch online or on RFD-TV on August 27

Learn more about the concert.

We hope to see you there! As a thanks for joining us, we’re giving $10 gift cards to each of the next 100 people who use code GIFT10 at registration and attend at least 30 minutes of the event August 25-27.

Register Now!

Make Plans to Attend Farm Journal Field Day

Wed, 11 Nov 2020 06:25:55 GMT

Farm Journal Field Days is a combination of virtual and live programming to take place Aug. 25–27. The more than 100 informational sessions align with key interests and needs of the crop and livestock sectors.

The exciting #FJFieldDays agenda, designed to incorporate all the elements important to you, make this event a must-attend. Here are just a few reasons to register now:

Powerful and Insightful Speakers: Hear from leading experts such as Meteorologist Eric Snodgrass, Ag Economist David Kohl, Machinery Expert Greg Peterson, Farm Journal Columnist John Phipps and more!

Easily Accessible: Since it is online, you are not limited by geography or time restraints. This type of programming is more convenient in every way.

On-Demand Learning: Even though the virtual event spans three days, you can learn at your own pace. Log on at certain times to hear your favorite speakers, and then you can revisit other topics when you have the time.

Interactive Farm Tours: Take a behind-the-scenes look at our two host farms—Blue Diamond Farming Company in Jesup, Iowa, and Newcomer Farms in Bryan, Ohio.

Direct Access to Exhibitors: You probably haven’t seen or interacted with your suppliers in the past few months. Visit their virtual booths, ask questions and learn about their latest offerings. You’ll also receive an event “swag bag” with materials from sponsors.

All this in a #CovidSafe, #Virtual and #OnDemand format. Whatever your biggest challenges are, our extensive agenda has got you covered across three days of virtual sessions on the latest trends, developments and opportunities for your farming operation.

Join us live online and let us bring these compelling experiences to you from the comfort of your own farm.

Register now for the Farm Journal Field Days!

Enjoy On-Demand and Live Learning at Farm Journal Field Days

Wed, 11 Nov 2020 06:25:55 GMT

In times of uncertainty, staying up to date with the latest industry information is imperative. Farm Journal has responded to your recent comments and feedback to create the Farm Journal Field Days , an unparalleled format of virtual live and on-demand learning, discussion and networking designed to be inclusive for all farmer leaders and their operations.

During the three days of virtual programming, we will cover all the topics important to you:

Business & Finance
Grain and Livestock Marketing
Technology
Machinery
Policy
Agronomy

With all the essential content in one place, you can keep track of the latest industry developments and find opportunities for your business, giving you that competitive edge.

Register now for the Farm Journal Field Days!

Highlights of the packed agenda include:

Managing Through the Black Swan Cycle by David Kohl, Virginia Tech
Panel: How to Face and Overcome Financial Stress
Predicting Chaos - Weather Risk in Production Agriculture by Eric Snodgrass, Nutrien Ag Solutions
Used Machinery Values Trends and Predictions by Greg Peterson, Machinery Pete
Panel: Is the U.S. Too Dependent on Corn?
2021 Cash Rental Negotiations: Overcome the Noise and Negotiate Like A Pro
Panel: Technology, Traceability and the Beef Industry of the Future

With access to all virtual education and topics, sessions presented by leading experts in the industry and endless opportunities to connect with your peers, sponsors and exhibitors, this event provides you with practical strategies and tactics to advance your business.

Whether you join for one hour or 20 hours, this event gives you the chance to gain insights, learn at your own pace and network with others. Join your farmer peers, industry leaders and your favorite Farm Journal experts at #FJFieldDays.

The Farm Journal Field Days will end with the #FarmON Benefit Concert , headlined by Grammy-nominated and ACM award-winning country artist Lee Brice, who joins a slate of top country performers in a free virtual concert. As the grand finale of Farm Journal Field Days, the concert is Farm Journal’s way of saying thank you to everyone in agriculture for keeping our nation’s food supply moving forward.

For a program agenda or more information about Farm Journal Field Days and the #FarmON Virtual Benefit Concert, go to www.FarmJournalFieldDays.com .

The Clock is Ticking on Farm Journal Field Days! Register Now!

Wed, 11 Nov 2020 05:22:03 GMT

The Farm Journal Field Days agenda has been designed to address the biggest issues and challenges facing the agricultural industry right now. Farm Journal Field Days is days away! Plan to join us Aug. 25-27 for this free event.

Register today and mark your calendars so you don’t miss out on Farm Journal’s most anticipated event!

Here’s what you can expect from this event:

On-demand content featuring eBooks, videos, interactive resources, and more
A robust variety of keynote speakers
Exclusive insight to trends affecting the industry right now
A complimentary swag bag
Chances to win remarkable prizes, including a new tailgate grill
A FREE country concert featuring Lee Brice, Justin Moore, and MORE!

Register Now!

Introducing some of our keynote speakers:

Gian Paul Gonzalez
Gian Paul is widely recognized for inspiring the New York Giants to their most recent Super Bowl victory with the phrase “All In.” He has been featured on ESPN as well as had notable appearances on Fox News and CNN.

Eric Snodgrass
Eric Snodgrass is the Principal Atmospheric Scientist for Nutrien Ag Solutions, where he develops predictive, analytical software solutions to manage weather risk for global production agriculture.

David Kohl
Award-winning instructor David Kohl’s involvement with ag businesses and interaction with key thought leaders provides a unique perspective into future trends of the ag industry and economy.

Register Now!

The New American Farm Show™

Farm Journal is teaming up with the National 4-H Council to highlight the young women and men of 4-H who have raised livestock and completed projects this spring, making them the centerpiece of the FREE #FarmON benefit concert with headliner Lee Brice.

Text photos or video of your 4-H’er and his or her project with the tag “FarmON” to 31313, or tag #FarmON on social media. Select photos and videos will be shows as part of the virtual #FarmON concert Aug. 27 at 7 p.m. Central on AgWeb.com, YouTube and RFD TV.

8 Must-See Speakers at Farm Journal Field Days

Wed, 11 Nov 2020 05:21:18 GMT

These eight can’t-miss speakers at Farm Journal Field days arm you to overcome the (significant) challenges of 2020

By Mary Magnuson

In times of dramatic transition, good things come to those who lean in and adapt quickly. Clearly this is one of those times. And the team at Farm Journal is leaning in to bring you the first virtual farm show experience—and to help you find next steps that will position your farm to thrive.

Farm Journal Field Days , Aug. 25 to Aug. 27, will give you the insights you need today—without leaving your farm. It’s free, and convenient, so anyone on your team can jump online and take in a session or two. And you’ll find all the exclusive resources, amazing sessions, and insider tips you expect from a great event. Check out these 8 don’t-miss speakers—and save your seat today!

Resiliency: How to Live “ALL IN” and Overcome Obstacles with Gian Paul Gonzalez

Gian Paul Gonzalez is widely recognized for inspiring the New York Giants to their most recent Super Bowl victory with the phrase “All In.” He has been featured on ESPN, Fox News and CNN. And his inspirational talks have made him an internationally renowned speaker for the NBA, NFL, English Premiere League, MLS & Fortune 500 organizations. Gonzalez was a former NCAA First Team All-American forward from Montclair State University, scoring nearly 1,400 points in his three-year career. He played in the NBA Summer League and was offered professional basketball contracts, yet he turned them down to continue his work with at-risk youth. He’s the founder and executive director of Hope & Future, an organization using athletics and physical fitness to share a message of hope and excellence in inner-city public schools and juvenile jails.

Managing Through the Black Swan Cycle with David Kohl

Now and then we experience something completely unpredictable–and totally out of our control. Covid-19 is the epitome of that kind of black swan event, and it will clearly transform agriculture. But how? David Kohl, professor emeritus of agricultural finance at Virginia Tech University, has a few ideas. “It’s time to step back, reinvent yourself, and find the silver linings the situation offers,” he says. Kohl’s involvement with ag businesses and interaction with key thought leaders provide a unique perspective into future trends of the ag industry and economy. Don’t miss this opportunity to leverage his timely insights for your farm.

2021 Cash Rental Negotiations: Overcome the Noise and Negotiate Like A Pro with Chris Barron, Ag View Solutions; Mark Faust, Echelon Management; Ryan Bristle, Russell Consulting

2021 land rental discussions are now upon farmers. To successfully negotiate win-win agreements, you need to answer four key questions. Our experts will dive into these four topics and provide first-hand experience.

Trends and Predictions for Used Machinery Values with Greg Peterson

Greg Peterson has over 25 years of experience in the machinery business. His website, MachineryPete.com, is the premier, online destination for farmers and dealers, providing a comprehensive used farm equipment search experience with tens of thousands of farm equipment listings. The site also offers dealers innovative multimedia marketing solutions, including local market intelligence, targeted online advertising and site analytics. His auction pricing database (available with subscription) totals close to 500,000 auction sale prices on roughly 70 categories of equipment, making it the most comprehensive and complete of its kind. He authors regular columns for Farm Journal and Top Producer.

Marketing According to Jerry: Life Lessons Learned in 30 Years of Grain Marketing with Jerry Gulke

Jerry Gulke lives at the busy intersection of corn, soybeans, wheat, and smart business—and he walks his talk as a farmer in northern Illinois. He’s a respected consultant, a contributor to Top Producer magazine, and he makes regular appearances on ag radio and television programs, including “AgWeb Radio,” “U.S. Farm Report” and “Squawk on the Street.”

Predicting Chaos — Weather Risk in Production Agriculture with Eric Snodgrass

Eric Snodgrass is the Principal Atmospheric Scientist for Nutrien Ag Solutions, where he develops predictive, analytical software to help agricultural producers manage weather risk. His frequent weather updates focus on how high-impact weather events influence global agriculture productivity.

John’s World: Be Realistic, Even Pessimistic, Without Being Discouraged

Illinois farmer John Phipps writes humor and commentary columns for Farm Journal and Top Producer—making him the perfect person to talk about keeping difficult situations in perspective. He’s also the TV host of the renown “U.S. Farm Report.”

Business Leaders Share Turnaround Tips for Tough Times with Mark Faust

Since 1990, Mark Faust has run Echelon Management, a growth consulting firm—making him the perfect source for best practices and growth strategies at Farm Journal Field Days. Faust is also an adjunct professor at the University of Cincinnati and Ohio University; an adviser on company boards, CEOs, and business owners; and he has conducted hundreds of sessions for dozens of the world’s largest companies including John Deere, Apple, Bayer, IBM, and P&G. Now he’s conducting a session just for you.

The Farm Journal Field Days will end with the #FarmON Benefit Concert , headlined by Grammy-nominated and ACM award-winning country artist Lee Brice, who joins a slate of top country performers in a free virtual concert. As the grand finale of Farm Journal Field Days, the concert is Farm Journal’s way of saying thank you to everyone in agriculture for keeping our nation’s food supply moving forward.

For a program agenda or more information about Farm Journal Field Days and the #FarmON Virtual Benefit Concert, which are both FREE, go to www.FarmJournalFieldDays.com .

Don't Miss It! Farm Journal Field Days Registration Is Open.

Wed, 11 Nov 2020 05:21:03 GMT

A wealth of agriculture innovation, technology and practical know-how are about to be available to you with the launch of the first-ever Farm Journal Field Days .

This one-of-a-kind, new show features more than 100 free informational sessions. You’ll get on-site and virtual discussions, tours, agronomic and management solutions and presentations from key industry leaders, all over the course of three days — August 25, 26 and 27.

Farm Journal understands the importance and value of farm community events and the need for deeper connections for members of the ag industry, now more than ever. The company has used strategic and insightful leadership to design Field Days, so its informative sessions will be available to you live and also on-demand.

There’s more exciting news to come — including a complete lineup of exclusive speakers — so this is just a sampling of what you can expect:

Powerful and Insightful Speakers: Hear from leading experts such as meteorologist Eric Snodgrass, ag economist David Kohl, machinery expert Greg Peterson, Farm Journal columnist John Phipps and more!
Easy Access: Since it is online, you are not limited by geography or time restraints. This type of programming is more convenient in every way.
On-Demand Learning: Even though the virtual event spans three days, you can learn at your own pace. Log on at certain times to hear your favorite speakers, and then you can revisit other topics when you have the time.
Interactive Farm Tours: Take a behind-the-scenes look at our two hosts farms—Blue Diamond Farming Company in Jesup, Iowa, and Newcomer Farms in Bryan, Ohio.
A Safe Environment: You don’t have to worry about safety or health concerns. Farm Journal understand being #Covidsafe is essential.
Opportunity to Learn As a Team: Normally, only one or two folks from your family or farm can attend in-person events. With Farm Journal Field Days, you can all learn together. Make the lunch hour a watch party, and then discuss what you learn.
Direct Access to Exhibitors: You can visit their virtual booths, ask questions and learn about their latest offerings.
It’s Free: To access the 100-plus sessions, you simply have to register—at no cost to you!

Along with the great opportunities to learn innovative information you can put to work on your farm or ranch, you’ll get to enjoy Grammy-nominated, award-winning country artist Lee Brice in an exclusive #FarmON benefit concert. He joins a slate of top country performers in a free, virtual concert. As the grand finale of Farm Journal Field Days, the concert is Farm Journal’s way of saying thank you to everyone in agriculture for keeping our nation’s food supply moving forward.

Donations from the concert will benefit the National 4-H Council’s FOURWARD fund.

To register and learn more information about Farm Journal Field Days and the #FarmON Virtual Benefit Concert, go to www.FarmJournalFieldDays.com .

Paul Neiffer: Your Options for PPP Forgiveness

Fri, 20 Nov 2020 03:07:04 GMT

As of June 6, 2020, over 129,000 farms (including forestry, fishing and hunting businesses) have received more than $7.6 billion in Paycheck Protection Program (PPP) loans. Congress recently updated the CARES Act PPP provisions with the PPP Flexibility Act, and it appears that your last chance to get a PPP loan is now June 30, 2020.

You now have 24 weeks to spend the proceeds on labor, interest, rents and utilities. If you spend all of the loan proceeds on these items, then you should have all of the loan forgiven, however, it may be reduced if your full-time employee equivalent is lower in the covered period than in certain discovery periods. For this column, we will assume there is no FTE reduction.

A forgiven PPP loan is tax-free to the farmer, but you will be required to reduce your expenses by the amount of forgiveness. This likely means no net tax benefit. However, Congress may change this to allow for a full deduction of these expenses. Let’s review the requirements for the different types of farm operations.

Schedule F Farmer with No Employees

Your loan was based on your 2019 net Schedule F farm income. Forgiveness is limited to 8 weeks of this income amount. It appears you are required to write yourself a check for this amount to get it forgiven. Any extra loan proceeds can be spent on interest, rents and utilities.

Example – Jane shows $100,000 of income on her 2019 Schedule F. She received a loan for $20,833. During her covered period, she writes a check to herself for $15,385. She also spends at least $5,448 on interest, rents and utilities. Therefore, the whole amount is forgiven. However, if she can only spend $2,000 on these items, then she will owe $3,448 with 1% interest amortized to be fully paid in 5 years (it could be 2 years).

Schedule F Farmer with Employees

The same rules apply except this farmer received extra funds for their employees and as long as they spend at least 60% of the proceeds on employee labor; write a check to themselves for the required amount; and spend the remaining loan proceeds on interest, rents and utilities; the loan should be fully forgiven.

Partnership

A farm partnership’s loan amount is based on 92.35% of the partners’ self-employment income plus any employee labor. Forgiveness is very similar to a Schedule F farmer since they have to write a check to themselves for their “owner compensation” plus spend funds on payroll costs, interest, rents and utilities.

Corporation

A corporation’s loan amount is based on total payroll costs including the owner’s salary. As long as they spend the proceeds as described above, they should get full forgiveness.

The Bottom Line: It is likely that most farmers will get full forgiveness on their PPP loans. However, for most, it will also require them to write a check to themselves. Make sure you don’t forget to do this.

Get updates on COVID-19 relief resources, including how to apply for aid and business and finance tips to manage cash flow and restructure your budget sheet. You’ll also find advice on leadership during a crisis, managing labor and handling employees’ stress—and your own.

Visit AgWeb’s COVID-19 Resource Center.

Paul Neiffer is a tax principal with CliftonLarsonAllen and author of the blog, The Farm CPA.