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Farm CPA Estimates Per-Acre Bridge Payment Rates In Anticipation of Final USDA Numbers

Wed, 10 Dec 2025 22:32:58 GMT

The Trump Administration, recognizing the challenges in farm country related to trade negotiations and the impact on production costs and prices, is rolling out a new $12 billion aid program. The Farmer Bridge Assistance program is a one-time payment delivered to farmers, which the administration says have been impacted by unfair market disruptions.

“We have been looking at the impacts of a lot of components related to agriculture,” explains Richard Fordyce, USDA Undersecretary for Farm Production and Conservation. “Some prices are not where we want to see them from the commodity perspective, and inputs seem to be very reluctant to come down, whether that’s fertilizer, crop protection, seed or equipment.”

Higher safety net reference prices for the major crops, approved in the One Big Beautiful Bill earlier this year, are on the way but they won’t be available until October 2026. Hence, the decision to deliver a “bridge” payment was made, given the income challenges plaguing farmers in several corners of agriculture.

“The increase in those reference prices is going to really make a big difference from a safety net standpoint,” Fordyce adds.

Farmer Bridge Assistance Enrollment Starts Today

Getting enrolled begins today. Eligible producers must verify 2025 acreage reports by Dec. 19.

“I’m going to guess 99% of acreage reports are complete, but we want to give folks who maybe haven’t done an acreage report up to this point the opportunity to get that acreage report filed,” Fordyce says.

He says most farmers likely did an acreage report by July 15 and fall-seeded crops were done in fall 2024.

"[These few days are] for the folks who have not done one or maybe historically don’t do them,” he explains. “It’s an opportunity for those folks to get that done.”

Payment Estimates Before Christmas

Fordyce says once the acreage numbers are in, they’ll finalize the payment rates by crop. Those will be ready by the week of Dec. 22.

“The reason we wanted to get that done before the first of the year is to give some certainty to producers,” Fordyce says. “If they’re trying to secure financing for the 2026 crop year, they’ll understand where they are financially and where this bridge payment will come in [to help] make a difference.”

Farm CPA Paul Neiffer says USDA appears to be considering a calculation for the Farmer Bridge Assistance similar to the Emergency Commodity Assistance Program (ECAP).

“ECAP took the December 2024 marketing year average estimates from USDA and then subtracted the estimated cost of production for the 2024 crop and then applied a payment percentage,” Neiffer explains. "$10 billion was authorized for ECAP, $11 billion for Farmer Bridge Assistance. Therefore, it is likely Farmer Bridge Assistance payment rates will be at least 10% higher on average.”

Neiffer assumes any increase in the cost of production for 2025 compared with 2024 will be about the same percentage for all crops. Therefore, the only difference between ECAP and FBA is the estimated marketing year average price.

Here are his estimates for final Farmer Bridge Assistance payment rates for six crops:

If this tracks with USDA’s final calculations, it’s clear Southern farmers, those raising cotton and rice, will see higher per-acre payouts than soybean growers in the Midwest. USDA says these payments are expected to be delivered by the end of February 2026.

USDA says Farmer Bridge Assistance applies to producers of a broad list of row crops and oilseeds, including:

Barley
Corn
Cotton
Peanuts
Oats
Rice
Sorghum
Soybeans
Wheat

Plus crops such as canola, flax, mustard, rapeseed, safflower, sesame and sunflower, among others.

A Bridge to 2026

The administration had been expected to roll out as much as $15 billion in aid back in October, but Rollins said the 43-day federal government shutdown pushed back the timeline.

During his first term, Trump directed about $23 billion in aid to farmers. Reuters reports producers this year were already on track to receive nearly $40 billion in ad-hoc disaster and economic assistance.

The new trade aid package is widely welcomed, but many U.S. farmers say the damage from the trade war, and China’s boycott of U.S. soybeans through harvest, has already taken its toll. Billions of dollars in lost soybean sales pushed China toward South American suppliers, creating long-term financial and market consequences.

“Certainly we have an idea of what that gap is between where prices are and where the cost of production is [along with] just a whole bunch of other economic indicators,” Fordyce says. “We’re not going to be able to make up that full difference with this eleven billion but it certainly is a step in the right direction and it will offer some relief.”

Hope for Pork Profitability in 2024 is Fading

Tue, 04 Jun 2024 23:55:31 GMT

U.S. pork producers just came off the worst 18 months of negative profit margins in history, even 1998. There was optimism when hog futures rallied to contract highs at around $110 this spring that 2024 would be a more profitable year. However, that hope has faded.

Pork margins started off 2024 in the black, but spring and summer month hog futures have set back $15 to $17 from the contract highs set in mid-April.

Steve Meyer, senior livestock economist, Ever.Ag Insights, says cash and cutouts just stalled the last six weeks, pulling down the lean hog futures and cutting into break evens and profit levels.

“It has gotten progressively worse since March,” he says. “Back in March, the model I have - which is based on historical Iowa State University estimated costs and returns - had about $10 per head, and that’s for probably the low cost 25% of producers which I think the Iowa State model really represents. So, that was about $10 per head back in March. That model last week had minus $4, and it’s mainly been a reduction on the revenue side because of the selloff we’ve seen on the lean hog futures market.”

Meyer says the cost of production has also increased.

“We had about $85 in that cost model back in March and almost $88 now. So, the uncertainty of getting this crop planted has kind of put a little fuel on the corn and soybean markets and cost us some,” he says.

Cash and the Lean Hog Index have also stagnated as pork cutouts have been flat during April and May. Meyer says cutouts usually stage a seasonal rally of $6 to $8 in the spring. So, it’s not tied to hogs supplies but instead soft demand.

“Export demand has still been pretty good, so I don’t think that’s where it is,” Meyer explains. “If we look at the real per capita expenditures, pork real capita expenditures are down almost 5% year to date through March. That tells us that the softness we see is on the consumer side in the United States.”

He’s concerned about the slower demand with supplies ramping up into 4th quarter as weekly hog slaughter pushes over 2.7 million head and squeezes processing capacity.

This could mean additional pressure on cash and wholesale pork values ahead.

Senate Ag Committee and South Dakota Producers Want "More Farm in the Farm Bill"

Wed, 17 Apr 2024 13:02:16 GMT

At farm bill listening session in South Dakota members of the Senate Ag Committee expressed optimism about getting a farm bill done yet in 2024 and putting more farm in the farm bill.

Senate Ag Committee Ranking Member John Boozman (R-AR) told attendees House Ag Committee Chair GT Thompson will release the chairman’s mark in early May and has resolved the controversial SNAP changes.

“What we’d like him to do is go ahead and go first and then the minority side on the Senate is we will come through with a framework shortly after that, we’ve pretty much got that done. The idea is just to get a farm bill done this year.”

Boozman says farm bill updates are needed to reflect today’s market environment and tighter margins.

“We need a major restructuring now because of inflation, because of the fact that the last two years we’ve had the greatest drop in farm income in the last 100 years.”

That’s why he and North Dakota Senator John Hoeven introduced the FARMER Act to make crop insurance more affordable.

Boozman says, “And what we want to do is change crop insurance a little bit where it helps everyone more but also so that its more accessible to other regions of the country where they’re not able to use it successfully.”

This is something the crop insurance industry says they support because it will replace ad hoc disaster assistance.

Glenda Blindert owns Blindert Insurance Agency in Salem, South Dakota and is also a member of the National Crop Insurance Professional Agents. She says they want to get rid of ad hoc disaster assistance. “There’s been about $65 billion that’s gone out for ad hoc disaster that really didn’t help a lot of our producers. It should have. :46 What we want to see is Senator Boozman and Senator Hoeven have released legislation to potentially raise crop insurance subsidies at those higher levels.”

Senate Ag Committee member John Thune says they also need to put more farm back in the farm bill.

“The nutrition title for example, the climate issues that’s become a big priority for a lot of particularly on the Ag Committee and especially in the Senate. So, when we say that what we’re saying is those parts of the farm bill that focus on production agriculture.”

The reference price increase is something the soybean association is pushing for as the current level is only $8.40 says Kevin Deinert, president of the South Dakota Soybean Association:

“Yeah, reference prices are just well below what they should be. As we’ve seen back when we’ve had trade wars or what not we’ve seen a significant decrease in the price of soybeans, we never triggered a loss in terms of those reference prices.”

Meanwhile, South Dakota Corn Growers Association President Dave Ellens told the Senators they also want crop insurance preserved, higher reference prices and updated base acres.

“Those base acres are based on data from what our grandpas used to plant and now that the corn belt has moved west and north, we need those to be reflective of what’s actually being planted out there.”

While this will cost more money the Senators are pushing for updates on reference prices and base acres.

Thune adds, “I think it’s more likely we’ll get something done on reference prices you know that’s expensive too. If we went to mandatory update base acres, I think you would get actually savings that you could apply but it’s also incredibly controversial.”

And Boozman thinks they can find the money in the CCC. “I think that’s a viable option. As there’s a lot of money being spent in the CC and a lot of money left over.”

Scott VanderWal, president of the South Dakota Farm Bureau, agree economic changes dictate a new bill and timing is critical before it gets caught up in politics.

“We need to get it done now because there’s so many other things coming along the tax cuts and JOBS Act expiration that’s going to happen in 2025 that’s going to be a big issue politically and we don’t want to have so many big things going on at one time.”

But with the farm bill cost estimated at $1.5 trillion over 5 years, the changes are a small cost compared to 80-percenf for nutrition programs and food security is national security.

From Farm to Fire: First Soybased Fire Suppressant Hits the Market

Wed, 27 Mar 2024 21:26:29 GMT

A new soy based fire suppressant has hit commercial scale and its due in part to research funded by U.S. soybean farmers.

Cross Plains Solutions developed SoyFoam, the first and only soy based firefighting foam. Managing Partner Alan Snipes, says. “It is a safer product than anything that’s out on the market right now. We’ve just been certified Green Screen Gold certification.”

That’s because Soyfoam is free of PFAS or forever chemicals, with no detectable flourines found in conventional fire suppressants.

Neal Bredehoeft, Director on the United Soybean Board, says “There has been some cases of that firefighters dying or contracting cancer because of the harmful chemicals in the foams they’ve been using.”

Dave Garlie worked in the lab to help develop Soyfoam which is 84% biobased. “It’s something that is more environmentally friendly, that’s healthier, that’s safer for use and then after point of use it’s rapidly degradable. It leaves no environmental footprint.”

Snipes says even though the product is green, its price competitive with conventional firefighting foams. “Right now, based on what the market is we see that we are comparable in price and in some cases even cheaper.”

It’s also a sustainable solution as it’s made from 50% soybean meal or flour. A new use and market opportunity needed for the extra meal that will come with soy processing expansion.

David Struck, Chairman of the South Dakota Soybean Research and Promotion Council says, “A lot of the oil stock is going for renewables and biofuels and so we’re getting a lot of meal and if we can use it domestically that’s a huge shot in the arm for us.”

Through the soy checkoff soybean farmers funded research and extensive testing for Soyfoam according to Bredehoeft. “It is a new product that we can use with soybean meal and that’s one thing the United Soybean Board has started to focus on is how do we start to make new products out of soybean meal we’re going to have in the future because we can only utilize so much with livestock.”

Premier Polymers in Dalton, Georgia will be manufacturing SoyFoam. Business Manage Scott Hanson says they’re seeing an industry shift toward biobased products. “We see this push to get away from PFAS and so we’re eager to be involved in anything that separates us from that.”

Soyfoam….a new use going from farm to fire.

Spring Weather, Drought Concerns and Price Impact Northern Plains Planting Decisions

Mon, 11 Mar 2024 19:51:14 GMT

Last year at this time farmers in the Northern Plains had several feet of snow in their backyard causing concerns about planting delays. However, it has been a relatively open and mild winter in the Dakotas and Minnesota. That could mean an early planting season but is also raising drought concerns and adding some questions about the planting mix for 2024.

Preparations are already underway for the planting season at the Grotte farm in the Red River Valley of North Dakota and with the lack of snowfall planting could come early.

Andrew Grotte, farms near Thompson, North Dakota and says, “If we don’t have any more snow, and with the warmer temperatures, it could be in April. I think corn could be earlier than normal.”

And that’s also true for other parts of the state according to Randy Martinson, with Martinson Ag, “There were guys that were putting anhydrous fertilizer down a week ago when that warm spell came so it does look like the first year in many years we could be in the field in April.”

But does the forecast support an early spring planting season in the Northern Plains? The director of the NDAWN or the North Dakota Agricultural Weather Network, shared his outlook with farmers at the CHS Ag Industry Day in Grand Forks.

Daryl Ritchison, says, “I think we’ll be early in comparison to last year is almost “a guarantee” but if we got a weird rain system or even a little snow in the middle of April which isn’t unusual for us you know that would set people back a little bit but the positive because we’re not starting with anything, anything we get would probably either melt or evaporate pretty quickly so the odds favor most areas getting in much earlier than last year.”

If that holds true, there will be a mad rush for inputs like fertilizer. A lot of product was applied last fall which helps, but retailers say it will be tight.

Chris Kolstoe, Agronomy Department Manager with CHS Ag Services says, “We certainly have a potential for a challenge going forward. You know I think our system will be full as we start the spring, and we had a really good fall with a lot of tons on the ground but still getting those resupplied tons definitely can be impacted.”

Sherry Koch, Sr. Technical Sales Mgr. for the Upper Midwest, for Mosaic adds, “ The potash we don’t foresee any supplies, the biggest challenge will be the logistics and getting up the river. And so on the phosphate side on the other hand we do anticipate it will be tight for spring.”

With the open and warm winter there are also some farmers worried about drought in 2024.

Andrew Grotte says, “We got less moisture throughout the winter than average, and we went into the winter pretty dry as well. The subsoil moisture is, is really low right now. We haven’t had enough moisture in the last couple of years to build that up.”

DuWayne Bosse, with Bolt Marketing says, “Winters like this remind them of 2012, 1988, 1976, so they are a little bit concerned about drought.”

But is it a valid concern this early in the season?

Ritchison says November through March are five months when the average precipitation is the same as it is in June. “So, winters are supposed to be dry and so at the moment there’s no concern. I’m forecasting it to turn dry so I understand there probably will be concern don’t get me wrong but as of right now most areas aren’t doing all that bad.”

And of course all this plus grain prices are playing into farmers planting decisions in the region. For the Grotte’s they’ve taken wheat out of their rotation, added corn, soybeans and edible beans.

Collin Grotte, says, “We got into edible beans a few years back and it’s just good to have a variety of crops with the way commodity prices are headed it’s not good, not good to have everything in one category.”

Martinson says many of the farmers he works with in North Dakota are looking at acre shifts. “ I think we’re going to see more beans in the whole state, less sunflowers, more canola, more dry edible beans, less barley and I think wheat’s going to suffer. I mean a lot of guys are pulling wheat out of their rotation because of the poor performance the market’s having.”

Meanwhile Allison Thompson with The Money Farm is working with many producers in North Dakota and Minnesota that are leaning towards more corn but at the expense of beans despite a better margin for that crop. “The last couple of years we’ve had really good yields, surprisingly good yields for a lot of guys. So, it’s not a surprise they’re leaning towards corn at this point verses soybeans. I think a lot of people in this neck of the woods definitely feel like we’re topped out on soybeans as far as yields.”

And acreage shifts are mostly likely to come in the fringe areas which is generally the Northern Plains, but according to DuWayne Bosse weather could still change some decisions.

“If we have an early spring farmers like to plant corn and that ends up being that one extra quarter of corn. Well that one extra quarter of corn could mean no shift at all and really corn can’t handle that it needs to give up some acres and that would be a very tight situation for soybeans so to me soybeans have to buy some acres here moving forward.”

So as we always say, Mother Nature will have the final say.

Iconic Holiday Road Trip Stop Returns to Its Georgia Pecan Farm Roots

Thu, 11 Jan 2024 20:44:08 GMT

Dashing through the snow in a front-wheel drive sleigh … the seasonal holiday road trip is a right of passage for many families. At one time, the roadside icon Stuckey’s was often a likely stop.

“At our peak, we had 368 stores in 40 states,” says Stephanie Stuckey, current chair of the Stuckey’s Corporation. “Stuckey’s really is synonymous with the road trip, during what I consider the era of the great American Road Trip, which would have been the 1950s to the 1970s.”

The roadside oasis, and its iconic pecan candies, are woven into the fabric of highway history.

“Back then, Americans wouldn’t travel by plane. They would load up in the car, usually in a family station wagon, and drive for five days,” Stuckey says.

The company was founded during the Great Depression by pecan farmer, WS Stuckey, as a roadside pecan stand.

“He always considered himself first and foremost, a pecan farmer and a pecan broker,” adds Stuckey, his granddaughter.

Today she’s leading a resurgence of that business, not as a highway stop, but as a pecan company with roots on Georgia farms.

“This is our big audacious goal: I want us to be the go-to pecan snack brand in the world,” she says.

Helping her on the journey is RG Lamar, a third-generation pecan farmer and company CEO.

“I can say as a Georgia pecan grower, I may be a little bit biased, I don’t know, but I genuinely believe we grow the best pecans in the world in the state of Georgia,” Lamar smiles.

He credits ample rainfall in the southeast and higher oil content with helping grow a larger-sized nut. The result is perfect for creating candied treats at Christmas.

Today, on an in-shell basis, Stuckey’s handles about 2 million pounds of Georgia pecans a year. As a state, Georgia grows roughly 100 million pounds.

“Interestingly, roughly 10% of the pecans grown in Georgia are grown in someone’s yard,” Larmar says.

Soon, the newly refocused Stuckey’s brand will be using even more Georgia pecans as the business continues to expand.

“Why is it that when you go into the grocery store, walk down the salty snack aisle and you get to the nuts, you can find every other nut sitting in that section, but you don’t see pecans there very often,” Lamar asks.

It’s a question this farmer and farmer’s granddaughter are aiming to answer.

“Of the original 368 stores there are only 12 left,” Stuckey says. “That’s OK because I saw what wasn’t on the balance sheets and that is the value of the brand.”

A brand, dumping, churning, dipping and packaging pecans, log rolls and clusters just the way the founder WS Stuckey did when he started.

“I would like to think if he were alive today, he would be really happy we’re making our comeback the way we began, as a pecan company,” Stuckey says.

Watch Christmas in the Country on Dec. 25 on AgDay TV .

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Will Inflation Return in 2024 and What Does It Mean for the Grain Markets?

Wed, 10 Jan 2024 21:16:14 GMT

Speakers at the Water Street Solutions Edge Conference in Tucson, Ariz., say they expect inflation to return in 2024. Not only will it have an impact on the interest rate environment, but it could bring the fund or speculative community back in to buy commodities, which would be positive for the grain markets.

Inflation cooled in 2023 following a series of interest rate hikes by the Fed. However, Arlan Suderman, chief commodities economist for StoneX, says there are already economic signs inflation could rear its ugly head in 2024.

“With interest rates coming down, we’ve seen a resurgence in interest in buying houses once again at lower mortgage rates,” he says. “Those are two sticky areas of inflation that can bring it back.”

Despite the markets pricing in lower interest rates this year, he doesn’t expect the Fed will cut rates, at least in early 2024.

“I believe that means higher for longer from the Federal Reserve, but the Federal Reserve will start to lose its influence on interest rates this year, particularly the longer end of the yield curve, as we see what’s projected to be a 23% increase in debt certificates offered onto the Treasury market because of government spending,” Suderman says.

That means the Fed most likely won’t be able to use interest rate hikes to curb inflation. That could cause the funds to buy commodities as a hedge against inflation, after being in a deflation mode for the last 21 months and short in many markets such as corn and wheat.

Darren Frye, CEO, Water Street Solutions, says: “The Fed has a tendency once they come out of something they go the other way. I think we could have a catalyst to get them flat and then we’d see if there’s something optimistic enough to get them long. But we might find out we have another surge in inflation and that would be bullish to commodities if that happened.”

Suderman adds that could support grain prices. “That doesn’t necessarily mean we get a big rally in prices, bit it does make it easier for the market to respond to any type of a friendly story that comes along,” he explains.

This environment might also pressure the U.S. dollar index, which is friendly for ag exports and prices.

El Nino to Weaken by Spring: What Does it Means for Grain and Livestock Producers?

Tue, 09 Jan 2024 17:17:34 GMT

El Nino has been dominating U.S. and South American weather for the last few months but there are some signs that the weather pattern may be changing. Weather experts at the Water Street Solutions Edge Conference in Tucson, Arizona talked about what that means for farmers in 2024.

El Nino has held on longer than expected which has meant a warmer drier winter so far in the corn belt. However, that pattern is starting to break down which is good news for grain producers but potentially bad news for cattle producers, especially feedlot operations.

El Nino is finally showing signs of weakening for the first time in four years. Weather expert Eric Snodgrass says its plateaued and may stay that way for the rest of the winter.

Eric Snodgrass, Senior Science Fellow, Nutrien Ag Solutions, says, “We think that by March we’re going to see it collapse and go quickly back to neutral conditions which means by spring and summer we could be talking about no strong signal from the equatorial Pacific.”

Kurt Hinz, Meteorologist, BAM Weather says that means no major break in the drought areas of the corn belt until spring. “It is also common with El Ninos to get dry in the upper Midwest, the Great Lakes, the Ohio Valley and it’s already been ongoing too as well. So, I would say If this El Nino lasts a little bit longer that would be a risk as we’re going into the first half of the season. “

Snodgrass has looked at El Nino winters going back to 1960 to determine what that means for the U.S. planting season. “We actually tended to have a little bit tighter planting windows in spring. It tended to be cooler early and then warmer when we got into May.”

Hinz says until El Nino fully fades the jet stream will also stay farther to the south bring moisture to the Central and Southern Plains. That’s good news for the dry winter wheat and cotton areas, but bad news for cattle feeding areas who will see performance and weight gains wane with cold and mud in the feedlots.

Hinz says, “It’s the next five systems that are going to be going across the country that I think will start to eat away at the drought that’s tucked away in the Mid-South, that’s tucked away in parts of the corn belt and its definitely going to pack up some snow in the northwest.”

And both agree that even with spring precipitation it will take time for recharge subsoil moisture, so some areas will see lingering drought and be dependent on just in time rains like in 2023.

Global Economic Slowdown Will Influence Grain, Dairy and Hog Markets in 2024

Mon, 08 Jan 2024 16:35:07 GMT

The global recession will continue to keep pressure on U.S. grain, hog and dairy markets in 2024. Plus, the U.S. is being undercut in the world export markets, with the strong dollar and the rising dominance of the southern hemisphere.

David Kohl, Professor Emeritus of ag and applied economics at Virginia Tech, recently shared this message at the Waterstreet Solutions Edge Conference in Tucson, Arizona.

He noted China’s economic growth rate was only between 2% to 4% in 2023. As a result, U.S. exports to China were down 40% - with that trend expected to continue through 2030.

“One in five dollars of net farm income comes from export markets and as we look at this global economy, we’re in a global economic slowdown,” Kohl says. “No. 1 is China because of its demographic issues and also because of the exports being down to China not only around the world but to the United States and Europe, along with the European economy kind of being in recessional times.”

Kohl says at the same time, South America’s agricultural production is expanding. Each year, land equal to half the size of Illinois goes into production in Brazil, turning the U.S. into a secondary provider.

“In other words, Asia and China, they’re going to go to the southern hemisphere. Whether it’s Brazil or New Zealand, Australia, etc. - they’ll go there first,” he says. “Now if they can’t supply them, then they’ll come to the United States and that’s going to pick up more and more steam as we move toward 2030 and agriculture producers and the ag industry are going to have to integrate that into strategy.”

Those export customers are also going away from the U.S. dollar and creating their own currency. As a result, Kohl says farmers will see tighter margins and need to globalize and future-proof their operations.

“You keep your business very financially liquid with working capital. Keep your cash and keep your options open,” he says. He adds to focus on the things you can control and manage around the uncontrollables.

Christmas Tree Farm Helps Families Make Memories

Thu, 28 Dec 2023 21:23:01 GMT

Christmas tree farming is becoming a rarer part of American agriculture, but at Riverview Christmas Tree farm on the Iowa, South Dakota border they’re helping keep the tradition alive.

Todd Gannon and wife Shari left the corporate world eight years ago and bought the farm where Todd worked during high school and their family visited annually to cut their own Christmas tree. “My wife and I were looking for a change. I was on an airplane every week. Just wanted to get back to more localized agriculture.”

Gannon says this type of agriculture requires a large amount of hand labor, plus each tree takes eight to ten years before it can be harvested and sold. “So, we have about 20,000 trees on the farm each year we will harvest or sell between 1000 and 1500 trees and then we come back in the spring with about 3000 new trees just due to the death loss, what’s harvested and then also some of the other trees are going to have to get knocked down because they’re just not growing real pretty. “

But a tree that’s not pretty to one family may be perfect for the next, and the Gannon says the experience of cutting their own fresh Christmas tree draws customers from hundreds of miles around. “We’re one of the last choose and cut your Christmas tree farms in the area. So, we’re kind of the last thing left.”

Their goal at Riverview is to help families develop long lasting memories. Gannon says, “We really specialize in the experience more than just the training and we have family that have been coming out for over 30 years. It’s really just a fun experience certain family get out in nature. Enjoy the holidays, Santa Claus is here, wander through the fields and really choose that perfect tree for your family.”

The Kuchta family of Tea, South Dakota, has been coming to Riverview for the last 12 years. Lynette Kuchta says they harvest their own tree in honor of her mom. “We decided to start our own tradition once my mom passed away and so this is our tradition that we come out and we pick a tree and actually my grandkids get to pick it so we get all sorts of different kinds of trees every year.”

And she says even the physical harvesting of the tree is a tradition that’s being handed down from generation to generation. “Kind of the guys rotate who actually does the sawing and so it started my husband was doing it and now my son has taken that over and eventually it will be my grandson.”

Once the tree is cut the Kuchta family heads off to have the staff process the tree for transport. Gannon explains, “So you bring the tree up and any of the past year’s growth has died off inside the tree will be shaken out. We’ll also drill the hole for a stand, and we sell stands. Then they run it through a nursery kind of bag which is a nice easy to transport unit.”

The Kuchta’s cap the day off with cider, hot chocolate and holiday goodies at the lodge and their annual family Christmas photo. A day of Christmas memories home made in the country.

Mexican Rail Crossing Closures Delivering Significant Blow to U.S. Agriculture

Fri, 22 Dec 2023 19:10:52 GMT

A coalition of nearly 50 ag groups are turning up the heat on the Biden administration regarding the Mexican rail crossing closures. They say every day the border is closed to commerce, U.S. farmers are losing millions of dollars due to Mexico being the top customer for many U.S. ag products.

USDA reports 64%, or 15.6 million metrics tons, of grain and oilseed exports move to Mexico via rail annually. And nearly a third of all grain goes through the corridors in Eagle Pass and El Paso, Texas.

“Mexico is our No. 1 or No. 2 market for virtually every type of grain,” says Max Fisher, chief economist for the National Grain and Feed Association. “For corn, it’s by far and away the largest market. For soybeans, No. 2, only behind China. It’s the No. 1 market for wheat.”

For wheat alone, it’s estimated more than 13 million bushels, worth $114 million, move through those two Mexican crossings per year, and nearly 70% of total U.S. wheat exports move via rail to Mexico.

“It’s somewhere between about 3.5 and 4 million tons a year to our number one customer. In bushels, that’s just shy of 150 million bushels,” says Vince Peterson, president and CEO of U.S. Wheat Associates. “To put it in perspective, Mexico is our No. 1 market for hard red winter wheat. It’s our No. 1 market for soft red winter wheat, and last year it was the No. 2 market for spring wheat.”

In 2022, nearly $4.2 billion of U.S. soybeans and products were also exported to Mexico with the vast majority going by rail. During this current marketing year, Mexico has been by far the largest buyer of U.S. corn - accounting for 47% of sales this year.

The coalition says time is running out as Mexican livestock and poultry producers could run out of feed as early as this weekend and then will shift to other international suppliers. This will hurt basis levels and prices for all U.S. grain and oilseed producers.

“We’re urging the administration to deal with this as quickly as possible. One thing, they have a humanitarian problem that we do on the border, but now this falls over into commerce,” Peterson says.

Fisher adds, “CBP is an agency within the Department of Homeland Security, which of course the Department of Homeland Security is underneath President Biden. So, we’re going to all levels.”

In a sharply worded letter to U.S. Homeland Security secretary Alejandro Mayorkas, the growers – representing corn, milk, rice and soybean producers, among others – said the crossings could be easily reopened.

“Each day the crossings are closed, we estimate almost 1 million bushels of grain exports are potentially lost along with export potential for many other agricultural products,” the groups wrote, adding that blocking food heading to Mexico could lead to inflation or food insecurity there.

U.S. Soybean Farmers Make Major Investments in Mississippi River and Port Infrastructure

Wed, 29 Nov 2023 16:32:50 GMT

Major infrastructure investments are being made on the Mississippi River and at the ports to keep farmers competitive in the export market.

U.S. soybean farmers have led efforts to improve infrastructure by funding research on lock and dam upgrades, as well as dredging on the Mississippi River.

“USB has put up the money for the research to do all this dredging since the farmers actually are willing to put money forward,” says Garrett Marsh, United Soybean Board director and Louisiana farmer. “It kind of encouraged the Corps to step up their timeline, I guess.”

Mike Steenhoek, executive director for the Soy Transportation Coalition, adds: “The United Soybean Board invested $2 million to help underwrite part of the cost of deepening this lower stretch of the Mississippi River from a minimum of 45' of water depth to 50'.”

He says that deeper depth allows another 500,000 bu. of soybeans to be loaded for export.

“You can put more freight and, in our case, soybeans per vessel, from about 2.4 million bushels of soybeans to 2.9 million bushels of soybeans,” he says.

That helps lower freight rates and adds to the value of the soybeans exported, according to Marsh. “With our $2 million investment, I think they’re getting a return of 13¢ a bushel because they can put more freight on a ship.”

That adds up to a big annual benefit for soybean farmers, Steenhoek says.

“What our research calculated was that farmers would benefit from this cost savings because our supply chain is more efficient due to the deepening of the channel, which will result in farmers receiving $461 million of additional value annually,” he says.

The dredging project is only two-thirds done, but is already returning benefits, says Micah Cormier with the Port of South Louisiana. “Last year, we actually saw a net increase in tonnage for our port for the first time in six years.”

Steenhoek adds: “We have a 50' or greater channel from the Gulf of Mexico to about river mile 170, and eventually that will extend to river mile 232, and then the project will be completed.”

USB also funded research to help with the modernization of locks and dams on the upper Mississippi River. Marsh says, “In lock and dam 25, we’re helping with a lot of research to try to redo it because a lot of our locks and dams are deteriorating.”

Steenhoek adds: “We’ve actually offered $1 million to the Army Corps of Engineers for one particular lock and dam improvement project north of St. Louis.”

The port of South Louisiana has also underwritten some needed improvements. Cormier says, “I’m sitting on the global plex dock, and there’s a crane that’s sitting right behind me. These are brand new cranes within the last year; they’ve tripled the value that has been able to move in a much more efficient manner.”

Port of South Louisiana Top Export Port for U.S. Grain Even with Historic Drought

Wed, 29 Nov 2023 16:10:16 GMT

The port of South Louisiana is the No. 1 export port for grain by volume in the U.S., so it’s important for U.S. farmers getting their product to export markets.

This vital area is a key link for moving grain down the Mississippi River from the main production areas of the U.S., and the port of South Louisiana handles product from 31 states.

Micah Cormier, with the Port of South Louisiana, says, “Of our 100 million tons of grain every year, 60% of the nation’s grain comes and is exported right here at the port of South Louisiana to over 90 countries throughout the world.”

Garrett Marsh, United Soybean Board director and a Louisiana farmer, says the port is critical for U.S. soybean farmers.

“55% of our nation’s soybean crop comes out of this Mississippi gulf region, and I think 89% of that comes out of this river,” he says.

The efficiency of this key grain infrastructure outlet helps to keep barge freight rates lower according to Mike Steenhoek, executive director for the Soy Transportation Coalition. “And that journey, because it’s by barge is very economical. It’s very reliable. And so, it’s really one of those secrets to our success.”

The end result is stronger grain prices for farmers Steenhoek says.

“When your supply chain becomes better or worse, those benefits or those costs get passed on to the farmer in the form of basis,” he adds.

The efficiency of the port of South Louisiana is also a key to keeping U.S. farmers competitive globally.

“There are other countries that that can produce the bushels, but they can’t get it to market as efficiently as we can,” Marsh says.

That competitive edge has been threatened the past two years with historically low water levels on the inland waterway system tied to the drought.

“Barge companies are having to resort to light loading their barges or reducing the number of barges that they attach to form one single unit,” Steenhoek explains. “On an individual barge [it could be] 20%, 25% even 30% reduction in the actual capacity that you’re transporting down the river.”

That has lowered overall export volumes for soybeans at the New Orleans port during their peak export season this fall.

“The last I saw was somewhere around 18% from the last quarter of soybeans down,” Cormier says, “and much of that has to do with the drought.”

Yet, despite this historical hiccup, Steenhoek says this export area barely missed a beat getting grain out and inputs back up the river.

“Even in the midst of low water conditions, very unfavorable conditions for transporting by barge, you still saw last year 55% of soybean exports leave from this area of the country, which is really a testimony to how profound this area is for us,” he says.

As a result, farmers are making major investments to keep this infrastructure efficient and effective for the future.

A Shift in the U.S. Soybean Market Brings New Opportunities for Meal Exports in Pacific Northwest

Wed, 29 Nov 2023 15:53:42 GMT

An exciting change is taking place in the soybean industry that will mean new markets for U.S. farmers. The U.S. currently exports between 55% to 60% of the total soybean crop each year on a volume basis, but now the industry is seeing a shift due to expanding soybean processing capacity.

The Pacific Northwest Port of Grays Harbor in Aberdeen, Wash., is an important infrastructure link for U.S. farmers getting their product to markets in southeast Asia. Grays Harbor focuses primarily on soybean meal brought in via rail from crush facilities in the northwest Corn Belt.

“We’re the largest soybean meal exporter on the west coast,” says Gary Nelson, executive director at the port. “We found a niche that works for us.”

The meal is loaded on ships destined for export customers in Southeast Asia, according to Mac Marshall, vice president of market intelligence, United Soybean Board.

“The Philippines is our No. 1 overseas export destination,” Marshall says, “but there are, of course, a number of other countries in that region, such as Vietnam and Indonesia, where there’s strong demand for soybean meal to support domestic animal agriculture and aquaculture.”

The port will play an even more vital role in the near future as the soybean export market sees a shift due to expanding soybean processing capacity, Marshall adds.

“If you look at all the company announcements that are public today, we’re looking at roughly a 30% expansion, maybe a shade higher than that, in the U.S.,” he says.

Those companies are seeing growing demand for biofuels, such as renewable diesel and sustainable aviation fuel, made from soybean oil.

“We’re going to have a lot more meal available for export as a result of that expanded crushing capacity,” Marshall says.

To prepare for that transition, soybean farmers are working with the port and Midwest soy processor AGP to make needed infrastructure improvements, including a new meal loadout facility.

“AGP approached us about two years ago with the idea the demand for oil is going to create a surplus of soybean meal,” Nelson says. “We started talking about planning for increasing our ability to export soybean meal out of the Port of Grays Harbor.”

Soybean producers in the northwest Corn Belt and nationally have also invested in these improvements because they realize the importance of infrastructure.

“For farmers to really capitalize on this and get the biggest value in return possible for their crop each year that requires efficiency of transportation and debottlenecking,” Marshall says. “That means we have to have efficient and higher capacity ports for unloading meal, putting it on the ships and getting it into export channels.”

There’s also a push by the soybean industry and AGP to expand sales in existing markets and develop new homes for soybean meal, according to Belinda Burrier, a farmer from Maryland and director on the United Soybean Board.

“USB, USSEC and WISHH, we’re all working together,” Burrier says. “It’s a great partnership. We’re building new markets and expanding the existing market so we can find a place for all of our soymeal to go.”

“AGP is also trying to stir up business,” Nelson adds. “We’ve shipped to all those places in Southeast Asia before, but they’re also working on developing their market as well.”

Burrier says market expansion and infrastructure improvements are important for her bottom line to improve basis and the cash prices she receives for her soybeans.

Washington Produce and Pumpkin Farm Creates Family Memories and Traditions

Fri, 03 Nov 2023 15:26:41 GMT

Pumpkin enthusiasts from all over Washington and Idaho come to Siemers Farm every fall in eastern Washington. It’s one of the largest pumpkin and produce farms in the state.

Burt Westover owns the farm. “We usually get about 5,000 people a day on a Saturday or Sunday, and we do that from mid-September all the way until the last week in October,” he says.

Westover bought the farm in Mead from Byron Siemers three years ago and has carried on the tradition of growing thousands of pumpkins for their pick-your-own pumpkin patch.

“We put in 53,000 seeds by hand, and we end up with probably 350,000 pounds of pumpkin,” Westover says.

Their rich Loess soil allows them to grow produce without irrigation.

“We just put the seeds in the ground, and we walk away from it,” he says.

Besides pumpkins, they sell a variety of produce, including apples and squash. Plus, they have one of the largest corn mazes in the Inland Empire.

“We have a four-story castle in the middle of it,” Westover says. “The kids get to go through the maze and then the reward for going through is to go inside the castle.”

Westover says Siemers Farm also helps families create memories that last a lifetime.

“A lot of times I’ll take pictures for people out here, and there’ll be a family with their little baby and that’s the start of their transition,” he explains. “I’ll hear their story about how they came here when they were a kid, and now they’re bringing their kids. It’s a generational thing.”

I-80 Harvest Tour: Widespread Drought in Minnesota Cuts Yields, But Corn Still Better Than Expected

Wed, 01 Nov 2023 22:01:02 GMT

The harvest has been speeding along in Minnesota this fall. So far, farmers have harvested three quarters of the corn, which is 10 points ahead of average. They’re wrapping up beans at 94% harvested, four points faster than normal.

Drought was widespread in Minnesota this season and while results are variable farmers say soybean yields have been disappointing while corn has been better than expected.

Nearly the entire state was hit by D1 to D4 level drought this season, but it was the third year for Bob Worth on his farm in western Minnesota.

“Some locations got some rain. And so, they’re not as far behind but most of our ground is seven to nine inches below normal.”

Plus, the heat was a double whammy and Worth says the yield monitor showed a 20 to 30 bushel drop on corn yields from the outer rows to the middle of the field.

Worth says, “Yes, we have tip back in the center of the field. Nothing on the outside. Just in the center. We do have tip back.”

Despite that the corn is standing well, disease pressure was low, and Worth says the results have been surprising at his Lake Benton farm.

“Our corn yields are so far running from 160 to 190 bushels. I mean, it just depends on the type of soil you have, but etc. and our APHs are 199. So, I mean we’re not that far off of a normal. When we get all done and average them all I think we’re going to be very, very happy with our corn yields. It’s just it just blows my mind.”

Worth farmed during some of the past drought years and in comparison, he’s not sure where the production is coming from.

“I lived through the 1976 drought, 1988 drought, the 2012 drought. My goodness this this stuff is just blowing the socks off it all. We actually had more rain back in 88 than now and this crop is just phenomenal and it’s dry. We’re taking it out of the field from 13.5% to 15%. So, we don’t have any expense drying.”

Unfortunately, soybeans didn’t quite fare as well as the corn. Not just because of the drought but also the heat. Worth says, “The heat took a lot off the beans because it just shut the plant down made it mature quickly and it just never got to fill the pods out.”

So, soybean yields were cut severely and ended well below his farm average. “Our range was 25 to 45 and our APH’s are 54. So, they’re down considerably from what we normally get. Soybeans were dry. They started off wet with two days of sun and high temperatures and when they went to 9% really quick.”

And with the dry beans they also had field loss. Worth says, “I mean, we lost bushels by shrink but we also lost bushels by field shatter.”

Statewide, crops are projected to be down in Minnesota compared to a year ago. USDA is estimating corn yield at 179 bushels per acre, 16 bushels below last year. Statewide soybean yield is at 48 bushels, down two bushels.

I-80 Harvest Tour: Even with Heat and Drought Yields Not That Far Below 2022 in Many Areas of Iowa

Thu, 26 Oct 2023 19:39:43 GMT

Harvest is well ahead of normal in Iowa with 62% of the corn out of the field. That’s well ahead of the 47% five-year average. Soybean harvest stands at 83% done, which is 16 points ahead of normal.

From field to field and even within fields this year’s harvest results are variable in Iowa, in part due to drought, which has covered over 90-percent of the state since late May. Yet yields are not off dramatically from 2022.

Larry Jacobsen’s farm in central Iowa, near Maxwell, only ran six to eight inches below normal for moisture. But he says the early season flash drought shaved yield potential. “I think it probably did some we went from a wet spring to a dry spell.”

But he also points to the late season heat stress as a yield robber. He says, “That heat we got in August I believe that it hurt our beans somewhat in yield. And I’m sure it’s cut back on our corn yield so it’s as hot as it was or heat index. And temperature wise for about six days there. It was. It was miserable.”

So, he says corn yields are running below 2022. “Corn wise we’re in that probably 220 to 230 bushel range.”

The heat also pushed the crop during filling and so test weights on corn are lighter. “We’re in that 56 to 57. Everything we hauled out last year was over 60 pounds.”

But surprisingly that early push to maturity hasn’t cannibalized the plant. “Our stalk integrity is great. We haven’t seen any ear drops. We don’t have any corn that is not standing it’s all standing very well for us.”

While grain moisture levels fell with the late season heat and dryness, he says they’re still having to dry some corn. “It’s running about 17% to 18% right now. We weren’t doing corn before the rain. That was about 15.5 to 16.5 so it’s picked up a little moisture with the rainfall we got.”

The soybean harvest is done at Jacobson’s farm, and he says that crop also ran below their farm averages. “Beans were in that 60-to-65-bushel range. The last couple years we’ve been about five to seven bushels better.”

USDA has Iowa corn yields pegged at 199 bushels per acre just a bushel under 2022, with soybeans only a half bushel lower at 58. Jacobson thinks that’s about right, even with the severe drought in eastern Iowa.

“This year I think it’s going to be similar to years past that. There’s going to be areas that have been hit hard. I mean they’re still drought we’ve got what they consider our area a light drought and there’s still areas that are as extreme drought. It just depends on where you’re at. And how the how the weather affected you.”

Jacobson says with less bushels at his farm and lower prices verses a year ago he’s seeing declining margins. “I think it’s going to be down this year. I mean, corn prices have dropped, we’re back down, and then $5 range or just a little under, whereas in the last year we were between six and seven. Profitability is going to be lower.”

And looking ahead to next year he says that trend may continue depending on where input prices fall out.

I-80 Harvest Tour: Lingering Drought in South Dakota Produces Disappointing Soybean Yields but Surprises in Corn

Fri, 20 Oct 2023 01:17:20 GMT

Farmers in South Dakota made good progress on harvest last week, despite the rain. Corn harvest is 37% done, 4-points ahead of normal, with 72% of the soybeans harvested, 13% ahead of average. Lingering drought in the state has produced some mixed harvest results.

It’s a tale of two crops in South Dakota with corn yields exceeding expectations while soybeans missed those late season rains and have been overall disappointing.

Kevin Scott and his son Jordan farm near Valley Springs, South Dakota, just east of Sioux Falls. Kevin says they were hit by heat and drought including in August when soybean yields are set. “The drought really hasn’t affected us much but this year we got hit and it’s a lot drier than I’m used to so yes I’m quite disappointed in what we have.”

Jordan says the crop was under stress most of the season. “The summer was pretty hot, pretty windy and you can see it in the yield monitor.”

Insect and disease pressure was also a problem late in the season. “We had some pests come in late, some gall midge on our edges some spider mites out in the fields.”

And so they’re harvesting soybeans that are below their farm average and well below 2022 according to Jordan. “Last year we had record yields, the weather was just perfect in our area we were in the 70s. This year we’re in the 50s so almost a 20-bushel difference.”

Despite the Scott’s harvest results, USDA has statewide soybean yields at 43 bushels per acre, which is 5 bushels above last year with drought not as widespread.

Kevin Scott says, “South and west was really dry last year and so they might be accurate on that. Yes, we probably have more than last year.”

In contrast, corn yields in much of South Dakota have been better than expected especially with the limited moisture.

Chad Schooley says precipitation was below normal for the season on his farm at Castlewood in the northeastern part of the state. “Our rainfall. We were probably short about five or eight inches from average. So that definitely hurt us.”

Plus, he says the heat also trimmed top end yield potential. “A lot of short ears and where we’re going probably the first part of the week, I’m going to run into some fields that have really bad tip back. That July heat it was tough on it.”

However, the quality of the corn is excellent and his overall corn yields are still running very close to his farm averages. Schooley says, “Either side of 200 is going to catch a lot of it. I hope to put a 2 in front of the average but there’s a lot of acres to go over to get there.”

Schooley attributes that performance to the timing of the rain and the drought tolerance of today’s corn hybrids. “The genetics that we’ve got going must be amazing because back when I started farming with that much rain we wouldn’t have had much of a crop.”

USDA is pegging corn yields in South Dakota at 147 bushels per acre which is 15 bushels above last year’s statewide average. And from early harvest reports that seems achievable.

Low Mississippi River Levels Hit Soybean Exports, Freight Rates and Basis Levels: Corn Moving by Rail

Mon, 09 Oct 2023 14:07:55 GMT

The historically low water levels on the Mississippi River have caused a trifecta in the soybean market. Its increased freight weights, slammed basis levels and taken a real toll on exports. So, cash soybean prices at harvest are running well under a year ago.

With impaired traffic in the U.S.’s main export shipping channel, USDA is reporting soybean exports so far this marketing year total 682 million bushels, down 32-percent from last year. And basis levels on soybeans have imploded in many areas along the river with barge restrictions and better than expected yields in some areas like Illinois.

Mike Zuzulo, Global Commodity Analytics says, “The Memphis basis for soybeans has just collapsed. I think it’s a $1.80 under right now and just two to three weeks ago it was 60 under or 70 under. And we’re sitting here with daily moves of almost 60 cents because of this pulling of the basis and just realizing we’re not going to get the demand.”

As a result, in markets farther away from the Mississippi River soybean basis levels have also weakened more than normal during harvest. That’s complicating marketing decisions for farmers who had tight basis in 2022 allowing many to sell off the combine.

Nick Tsiolis, Farmers Keeper says, It doesn’t take a genius to know out there that basis is falling. We’re also seeing outside of those areas where processors are starting to pick that up and raise their basis but what we’re noticing in the numbers is because they know that demand has fallen, and capacity has fallen so much at the river. They’re not spiking their bids nearly as much as they’re used to.”

Corn exports are pacing better than soybeans and are up 9-percent over last year, totaling 566 million bushels for the current marketing year. Zuzulo says that’s in large part due to Mexican purchases of corn, which can be moved by rail versus barge.

Fall Planted Cover Crops Can Break a Corn Soybean Rotation and Improve Soil Health

Thu, 28 Sep 2023 15:21:15 GMT

As the combines start rolling across the country farmers are focused on taking the crops off the land. However, it’s a great time for farmers to also be thinking about planting cover crops to help them improve soil health.

Anthony Bly is Soils Field Specialist at South Dakota State University and also a farmer that has used soil health practices for 30 years. He says there are various late season cover crops farmers can plant, depending on their goals and climate. “W e have to think about where we’re at as well, what latitude we’re at and how much time we really have left to work with.”

He says for farmers in a corn soybean rotation it’s a little more challenging to get a cover crop planted but they can look at winter annual grasses like wheat, winter triticale or cereal rye. “Rye would be an awesome cover crop to fly in on corn at physiological maturity. Catch some rain so that crop can germinate on the soil surface and be there next spring. What a great tool for managing water.”

Bly plants a 12 way mix on his own farm. “I have brassicas in there. I have legumes in there I have a few warm seasons, just a couple, two of the 12 or one season, but predominantly all rest are cool season species. And I’ve got every one of them in there for diversity.”

And he selects each cover crop species with a specific goal in mind for example flax. “Science has shown that flax really forms mycorrhizae associations on its roots. So, it promotes mycorrhizal fungi development as well.”

But he also has rooting cover crops. “It’s good to have a diverse rooting community and not have all tap roots or all fibrous roots, but a diverse mix of all of those root styles. So, I have the radishes and turnips in there.”

Those and other species also help build organic matter and carbon in the soil. “The brassicas and turnips and the broadleaf crops, legume crops promote breakdown of crop residues. And so, I need more carbon, so I’m going to be a heavily into carbon cover crops.”

Checking his fields prior to harvest Bly sees first-hand the benefits of his soil health system including the below ground activity such as nightcrawlers.

“So, the biological life is cycling crop residues and that’s a great thing because we know what that cycling there’s nutrients that become available for the following crops.

The Conservation Technology Information Center is providing technical assistance to farmers participating in the Farmers for Soil Health program in Wisconsin, Minnesota and South Dakota.

Jerry Schmitz, Executive Director, South Dakota Soybean Association says the program is devoted to increasing the usage of cover crops on corn and soybean acres. “We are educating and will help to implement in any way that we can. And that means mainly information. But we want it to be cover crops is going to be the huge focus and how to utilize those what works, what doesn’t, and whether it work on your farm or not. Those are the types of things we want to get into,” he says.

Schmitz says cover crops can be tricky to incorporate into a farmer’s rotation but have long term benefits. “From generation to generation. Everybody’s trying to do their best to protect the soil. And there’s not one answer to that. Every piece of ground is different. And we need to focus on what’s important to that family. They know the ground best, what can we do to assist them on achieving the goals.”

The program is being funded by Climate Smart Commodity grants from USDA and will also provide payments for new and existing cover crop users. The goal is to sign up 30,000 acres of cover crops in South Dakota during the first three years of the program.

I-80 Harvest Tour: Missouri Drought Hurts Statewide Yields but Harvest Results in Some Areas Buck That Trend

Thu, 28 Sep 2023 15:20:57 GMT

Drought hit farmers hard in much of Missouri this year cutting statewide yields, but there are areas where harvest results are bucking that trend.

One of those areas is northwest, Missouri where Bryant Kaygy is finding some pleasant surprises this harvest. He says they started off dry just like the rest of the state and got the crop planted ahead of normal. “We had enough soil moisture to get the crop off to a really good start. But it was it was really dry and it just kind of hung on through those first few months in the season.”

The pattern continued mostly dry in his area with just some scattered rains, so their subsoil moisture has been depleted. But the Amity, Missouri farmer knows he’s still in better shape than other parts of the state. Kaygy says, “I pulled up the Drought Monitor map this morning. And there’s a little bitty white yellow spot that’s right around us and it’s just surrounded by red severe drought areas. So really, really fortunate to have caught the rain we did.”

So, somehow, they’re getting above average corn yields on their farm. “You know, our corn has been anywhere from 210 to 240, which like I said, is probably 20% or 30% above normal and, you know on track to be one of our best years ever.”

They were also fortunate to have very little tip back from the heat and stalk integrity is solid. The one caveat is heat stress pushed the crop during filling and so the corn is a bit lighter. “The test weight of the corn we’ve sold so far have been kind of on that average what you’d expect for corn that 56 to 60 not as high as we’d had hoped.”

And this was the first year they’ve seen tar spot, which crept in late season. He says, “I don’t think it set in early enough to do a lot of yield damage, but it’s certainly going to be something we have to look at going forward for management.”

While corn harvest is nearly two thirds done on their farm, it may be a few weeks before they start on soybeans. And expectations are tempered by the dry August weather. “I hate to make a prediction, but I would hope mid 50 to 60, which would still be a really good average for us.”

Plus, he says disease pressure was significant. “We’ve seen a lot of sudden death pressure that came in in that early August timeframe. We had all that moisture; the beans were planted very early. And we definitely saw I think there’ll be some pockets that have some substantial yield loss from sudden death.”

But considering all the adversity during the 2023 growing season, he’s still very thankful with the outcome of this harvest season.

I-80 Harvest Tour Finds Some Silver Lining in Kansas Despite Another Drought Year

Thu, 21 Sep 2023 20:24:07 GMT

The corn harvest in Kansas is making good progress with about a quarter of the crop out of the field. However, with the drought only 32% of the crop is rated good to excellent and for beans it’s even less at 23%. Yet as Michelle Rook found there are still some areas where farmers are pleasantly surprised with what they’re finding in the field.

Ken and Brad McCauley feel very fortunate this season. In a year where nearly 70% of Kansas is under D1 to D4 drought, they’re seeing the results of some timely rains.

At their farm near White Cloud, Kansas they had a dry spell in the spring that lasted until through June, but they received five inches of rain in June, five inches in July and then not quite five in August.

However, they say they’re the exception and you don’t have to go very far before the drought and heat are evident.

Ken McCauley says, “It’s pretty close to ideal right here but west and south of us it’s not near as well off they’ve they’re really hurting for moisture patterns changed a little bit but right now it’s gone back to their dry in central and Northwest Kansas.”

As the combines roll through McCauley’s fields, they’re not finding the corn they did last year but still above APH. So, they’re pleased.

Brad McCauley says, “We started on some of our better ground and the yields were to 220 to 230 bushels per acre. Even little better than that in places and we went to some of our worst ground and still hitting the close to the 200 mark in areas.”

And while the drought has cut statewide corn yields in Kansas again this year, the average may be above 2022 according to Ken, who is a past president of the National Corn Growers Association. “I don’t think it’ll be down from last year because last year was pretty low. We were down in the 500 million bushels, and I think we’ll be up in oh closer to 600 million maybe.”

He says they did find some tar spot in the corn. But it came so late it may not have hurt yields…or test weights which are running 58- to 60 pounds. And the corn won’t need much drying as maturity was pushed by the heat. “Our moisture level on the corn right now is is 17% to 19%.”

The McCauley’s are a couple of weeks away from combining soybeans but they’re not expecting bumper yields. Brad says, “I see soybean yields kind of like corn not as on the top in this last year. But we’re going to have 70 plus.”

Disease pressure played a role but so did the weather.

Ken says, “When that sudden death hit it. Those fields are going to be sure we’ve had it before, and it really hurts your yield. While Brad added that the end of August it got hot for 10 days and that took some yield out of the beans.

As the harvest progresses, the McCauley’s and farmers across Kansas are hoping the weather pattern will change and finally break the drought as they move into 2024.

Mississippi River Water Levels Lower Than Last Year Moving into the 2023 Harvest Season

Thu, 14 Sep 2023 19:45:14 GMT

It’s like a bad movie sequel. While water levels on the Mississippi River haven’t hit the historic lows of October 2022, readings in some areas are already lower than at the same time last year. Transporation officials say that’s a real concern moving into harvest and could potentially lead to a shutdown of the river during the peak harvest and export season.

Mike Steenhoek, Executive Director with the Soy Transportation Coalition says, “You know when you look at places like Memphis, Tennessee. We’re actually about 10 feet lower right now that we weren’t the same period last year. And obviously, Memphis was one of the areas that was most adversely affected by the low water conditions in 2022. The stages unfortunately said for the problem becoming even worse this year. When you look at St. Louis, we’re about three feet lower right now than we were at the same period last year.”

That’s already restricting barge loading rates by 15% to 25% and it’s also decreasing the number of barges that can move in tow according to Steenhoek. “And then similarly, with the narrower shipping channel, you you’re seeing about another 20% to 25% reduction in the number of barges that you’re able to attach together to form one single unit.”

As a result, barge freight rates have soared, and Steenhoek says that makes the U.S. less competitive on the export front. “We’re looking at when you’re looking at freight originating out of St. Louis where 77% higher than the three-year average for freight originating in the Memphis area 91% higher than the three-year average.”

Last year the same scenario widened grain basis out 25 to 40-cents along the river, depending on the location, which cuts into farmer’s bottom line. And if the river sees any shut downs it could be disastrous as it would limit exports of soybeans during the prime season.

USDA Tightens Balance Sheet on Soybeans but Raises Carryout on Corn

Wed, 13 Sep 2023 17:17:49 GMT

The September WASDE was a disappointment for the bulls, especially on corn. Despite lower corn yields, an increase in harvested acres more than offset, resulting in higher ending stocks verses August. Meanwhile, on soybeans, USDA once again tightened the balance sheet, but it remains above estimates.

As expected, corn yields dropped in many states with Illinois and Minnesota both down 3 bu. and Nebraska was down 7 bu. The 1.3 bu. per acre drop nationally was disappointing, according to Ted Seifried, market analyst with Zaner Ag Hedge.

“A lot of analysts and brokers, for that matter, were really looking for numbers to drop a lot more than that, and the fact they didn’t is the biggest problem we have here today,” he says.

USDA incorporated the August FSA data and came up with 800,000 more harvested acres. Seifried says the $5.91 crop insurance guarantee and some lower input costs in the spring encouraged more corn. So even with a yield cut, production and corn ending stocks were increased 20 million bushels.

“We’re still well above a 2.2-billion-bushel carryover, and that is a problem based on the fact that production went up, but they didn’t do anything to increase demand,” Seifried says.

For soybeans, USDA lowered yield about as expected by 0.8 bu. per acre, with a 6-bu. drop in Kansas, 3 bu. in Nebraska and 4 bu. in Wisconsin. USDA only raised harvested acres by 100,000, resulting in a 60 million bushel drop in production. But ending stocks dropped only 25 million as USDA cut demand.

Seifried says: “207 million bushels was the average trade guess for carryover on a yield that was slightly higher than what USDA gave us. The fact that yield came in lower than the trade guess, but they had a carryover into 220 million bushels instead of like 205, that’s rough. USDA cut 35 million bushels off of exports and about 10 million bushels off of crush.”

On wheat, USDA left U.S. ending stocks unchanged at 615 million bushels, but lowered world carryover 7 million metric tons.

For cotton, production and ending stocks were lowered on a U.S. and world basis.

If China Is In a Recession What Does That Mean for U.S. Ag Exports?

Fri, 18 Aug 2023 20:24:01 GMT

China’s economic woes continue to mount. Not only has the stock market collapsed, but this week, China’s central bank unexpectedly cut key policy rates for the second time in three months, a fresh sign of urgency to support the struggling economy. This might already be spilling over to the U.S. commodity sector in the form of weaker export demand.

On Tuesday, the People’s Bank of China lowered the rate on medium-term lending facility loans 15 basis points. Plus, the yield differential between the China and U.S. benchmark 10-year government bonds widened to the most since February 2007, as investors speculated further easing of monetary policy and as China’s major state-owned banks were selling U.S. dollars to support their yuan.

Mark Schultz, Northstar Commodity, says: “China’s currency, I believe, is down to 16-year lows against the U.S. dollar. It’s all an attempt to try to spark better demand to come over and buy Chinese goods. And, of course, if China can then sell more of their goods, they would have cash and then they would probably start looking to buy more product.”

Mike Zuzulo, Global Commodity Analytics, adds: “You throw on top of that the 10-year yields we’re looking at right now going back up to the areas close to when we had the financial crisis in the Great Recession of 2008. The market is laser-focused on China and the negative side that’s going to spill over. There’s going to be a contagion.”

Firms are cutting China’s economic growth forecasts and Beijing’s official target of around 5% appears optimistic, which is already hurting demand for some U.S. products.

“They are probably in a real recession,” Zuzulo says. “They’re not near 5% growth. In my opinion, they’re probably barely at 2%, 2.5%. They really do need to stimulate, and that’s the heart and soul of why I think we’re dealing with 2019, 2020 levels and the corn and wheat prices right now. They don’t have the wheat and corn, they don’t have the support of the demand.”

Nearly $4 billion has been pulled out of the Chinese equities in August and there’s concern the collapse of their real estate bubble will cause financial contagion. Other economic news has been souring with industrial output slowing to just 3.7% annually, and retails sales are slow. China’s purchases of U.S. goods are down substantially in 2023, and their economic outlook will not help the situation.

Concerns Resurface About Low Water Levels on the Mississippi and Other Rivers Heading Into Harvest

Thu, 17 Aug 2023 20:45:42 GMT

Agriculture is not in a position of strength with the inland waterway system as farmers head into harvest. Water levels are once again low on the Mississippi River and other major rivers in the grain export system. Barge restrictions are already in place in some areas, cutting export capacity by about 5% and we aren’t even to fall when the height of the problems occurred in 2022.

Mike Steenhoek, Executive Director, with the Soy Transportation Coalition says, “When you look at water levels this year compared to last year, which again was really a challenge. We’re at comparable water levels. When you look at various spots along the Mississippi River, which is not a position you want to be in you wanted to be we want to be in a higher, more advantageous position this year than we were last year.”

Steenhoek says they’ll be closely monitoring water levels and rainfall during the fall months. That’s when water levels hit record lows last year due to drought, coinciding with the height of the soybean export season.

“Obviously it’ll depend on what happens during the month of September and in October with precipitation, barge transportation, there are some limitations that have been imposed, particularly on the amount that they can load into a barge. So, it’s a marginal decrease. But obviously we hope for additional precipitation to really at least maintain and hopefully elevate these water levels.”

NOAA is predicting a more active hurricane season which could bring more moisture to the corn belt, but it also increases the risk of damage to export infrastructure so it’s a double edge sword. One difference from last year is the transportation system is not facing the added uncertainty of a possible rail strike.

2023 Farm Bill Will Come Down to the Wire

Fri, 21 Jul 2023 14:28:28 GMT

The 2023 farm bill is coming down to the wire and according to the June Ag economists Monthly Monitor the majority of ag economists surveyed say it’s unlikely the bill will be written before the current legislation expires September 30. However, some think it could be done by the end of the year.

There is a strong desire among leadership to get a farm bill done on time. While language is being drafted, some ag leaders say delivering a bill before expiration may be tough with the ag committees still actively holding hearings. National Cattlemen’s Beef Association president Todd Wilkinson says, “You know frankly I would have to tell you I’m not very optimistic that we’re going to get the farm bill done but I think it’s better to get it done right, rather than to miss out on some things.”

There is consensus on priorities among lawmakers and farm groups such as preserving crop insurance but also enhancing it and ARC, PLC programs it in light of inflation and record production costs for the 2023 crop.

John Newton, Chief Economist with the Senate Ag Committee says, “So we’ve heard from growers across the country that we need to modernize and update the risk management tools that they have update the title one programs, the information that were you using for those reference prices and Title One were established using data that’s over a decade old, so we need to modernize the safety net make sure farmers have all the tools available to deal with the risks they face.”

That will require higher prices, so there is a call to increase the baseline. Plus, throw in administration priorities like nutrition and climate smart ag programs. The challenge is where to find additional dollars.

Sam Kieffer, Vice President for Public Policy with the American Farm Bureau Federation says, “Senator Stabenow has come out and said that there is no more new money. Chair Chairman Thompson has not yet made that concession and he continues to work with leadership in the House to see if they can find additional funding for an effective farm bill and Chairman Thompson’s number one priority is not just to get a farm bill done, but that’d be effective policy.”

Newton adds, “On the conservation side, I think a lot of folks who are looking at the $20 billion or so that was in the inflation reduction Act. I think about is there a way that we can bring that into the farm bill to create permanent baseline for some of those conservation related programs.”

While the CBO score is already at $1.5 trillion over 10 years, $1.2 trillion is for the nutrition title alone. So Kieffer says t’s also a food bill. “We‘ve taken everything in the farm bill that is not nutrition related. It’s still less than one half of 1% of federal spending in a single year.”

Livestock producers also want dollars for foreign animal disease prevention, disaster preparedness and traceability. However, Wilkinson says they’re also playing defense. “From the beef side our big deal is do no harm. So, we’d rather have them knock which brings into the Farm Bill. In kind of an omnibus fashion that all of a sudden causes problems.”

So, an extension may be needed, bringing the risk the farm bill will get embroiled in politics in a presidential election year.

Drought Eases Slightly but Still Grips Corn Belt: Nebraska Farmers Face Second Year of Dryness and Yield Loss

Mon, 17 Jul 2023 14:22:03 GMT

Despite rains the last couple of weeks in parts of the Corn Belt the latest drought monitor shows drought continues to grip a huge part of the Midwest. 64% of corn and 57% of the soybean crop is in D1 to D4 drought, just a slight improvement from week. And that same trend is true in Nebraska where some farmers say the ongoing drought is shaping up to be worse than the one they faced a decade ago.

“There ain’t much for moisture here.” This is the second drought Ryan Ueberrhein has seen in his farming career. The first was in 2012 but he says this year has been tougher with the lack of subsoil moisture this spring. The farmer from Valley, Nebraska says, “This was worse than that year. I mean, when we were planting this year, we struggled just to find moisture.”

Bart Ruth farms in central Nebraska, the epicenter of the drought near Rising City. “This year is by far the driest in my career. There’s no moisture over winter. No moisture this spring.”

In fact, many Nebraskans are facing year number two of drought.

Brian Fuchs is a climatologist, with the National Drought Mitigation Center at the University of Nebraska Lincoln, “I nto central Nebraska, most of that part of the state is under severe drought. And the further east you go, basically we’re seeing almost all of the Eastern one-third of Nebraska in extreme to exceptional drought, and that have slowly been increasing in spatial coverage over the last couple months.”

And the onset came earlier than last year or 2012, so irrigation pivots have been running for several weeks.

Ruth says, “We started mid-May and we’re like path number six on quarter ends. So we’re expecting twice as much water supply during the growing season this year as the average year.

Recent rains in some areas of Nebraska have improved overall crop conditions but farmers tell me they have already lost the top end yield potential on irrigated acres and the rain came too late for dryland crops, especially corn.

Ueberrhein says the stress is visible, “You get a hot 90-degree day. In the afternoon you look at that corn it’s all pineapples up looking, you know not good at all. So, I’m the top end yield is gone for sure. gone there. I would say at least 25%, 30% somewhere in there.”

Ruth says, “So I mean, there’s plants out there four inches tall, and first of July that won’t amount to anything. So you know we’ll have acres that will be zeroed out. Once a crops dead you can’t revive it not matter how much water you put on it.”

And the latest drought monitor still shows 86% of corn and 93% of soybeans in Nebraska are in D1 to D4 level drought, so production potential has been compromised.

Fuchs says, “Even with regular rainfall dryland crops you’re going to have a have a tough go of it. They started off with very little to no moisture in the soil profile this growing season and that means there’s not a lot of moisture for those crops as the season progresses.”

The exceptional dryness has also hurt this year’s forage crops and pasture conditions.

Dave Zies, farms and ranches near Valley, NE. “I was hoping for a bale per acre and a half of that we’re getting we normally get three and a half or they operate around here. So our our grass you know our hay crops just, you know next to nothing right now. So, we’re going to be in a bind here for a feed.”

And so he’s been forced to cull even more cattle from his herd. “We cut back from 100 cows down to below 80. And I’ve gotten rid of another 10 now and now we got to go back through and look again at any cow that looks cross eyed it’s out of here.”

And Nebraska isn’t alone. Nearly 64% of the Midwest is also in D1 to D4 level drought, up slightly from the previous week. So, the recent rains in those areas have not been drought busting.

Drew Lerner, Ag Meteorologist, with World Weather Inc. says, “I don’t think that the rain in some of those areas was greater than usual. So, the bottom line is that we are still looking at an environment here that is not real conducive for serious relief to the drought.”

Lerner says there’s already been yield loss and the forecast for the balance of the growing season may not reverse the damage. “We’ll have some timely rain, but not necessarily normal rain until rather late in season, which suggests that we may have a problem with getting the largest kernel sizes on these ears. And we may still have a risk of not completely filling some of ears in the dryer bias area.”

So, while USDA lowered national corn yield by four bushels per acre in the July report, there may be further cuts ahead.