We all know farming in 2019 was bad. Crops are still in the field, we had quality issues on the crops we were able to harvest, and prices were low. I am still determined to make the best of the bad situation.
I want 2019 to turn me into a lean mean farming machine for 2020 and beyond. I want to pinch every penny. Question every purchase. Review every invoice. You get the idea.
We make better decisions when we’re broke. I’ve heard this from many lenders, and I have seen it in farm management. We should question our decisions more often. Why did we buy that? Sell that? Plant that? Sell that much at that price? Store that many bushels at one time?
Pretend your farm is a company holding an earnings phone call with investors. What would the investors ask about your farm? How would you justify your decisions? “Please tell me
Lean Mean Farming Machines
“We need to treat our farm as an investment. We keep investing in it every year, and we want our money invested in a good company.
why you invested in combine tracks in September.”
“Please explain why your per acre crop insurance expense is lower than average. Are you fully insured?”
“Why did you spend more on a brand name chemical instead of generic?”
Question your decisions like an outside investor would question your farm.
When we complete a farm business management analysis, we have a whole page of ratios and measurements. We need to utilize those ratios for decision making.
If we look at investing in a stock, we can read their quarterly reports, see if the company is rated buy, sell or hold, review their ratios and determine if the company is a good investment. We need to treat our farm as an investment. We keep
investing in it every year, and we want our money invested in a good company.
Think about your crop marketing decisions. If you had farm investors, could you justify your crop marketing decisions? Would Warren Buffet, famous investor and owner of BNSF and Brock Grain Systems, nod his head and agree with your crop marketing decisions? I can only imagine the look he would give you when you explain why you are holding two years of wheat in the bin with no sales for 2020. Most of the time you cannot look in the mirror and say you made good crop marketing decisions. It would be very hard to justify your decisions to an outside investor.
When reviewing 2019 finances, one of the top comments from farmers is “I thought we’d rally once we signed the trade agreement.” I have heard that from nearly every farmer. We thought things would get back to normal with Chinese trade, and prices would rally. We learned there is more to the markets than China trade.
We are fortunate to be in
an era of cheap money and cheap interest rates. Storing grain is much easier at five percent interest versus ten. That still doesn’t mean it’s a good idea. It just means we won’t go broke as fast as we would at ten percent interest.
In 2020, let’s flip the story on crop marketing, and instead of justifying sales decisions, try to justify storage decisions.
Don’t look for reasons to sell. Look for reasons to hold. It is usually very difficult to find reasons to hold.
We learn lessons every crop year, and my hope is 2019 will help me become a leaner and meaner farmer. My crop marketing will always need improvement. I always fight my bullish instincts and my fear that I’m going to sell and miss out on a big rally. The battle between Bullish Betsy and Cash Loving Betsy will be there every year I farm. In 2020 and beyond, I want to do a better job of questioning my business decisions. I’m going to take a step back, and think if I could justify this decision to someone else. I don’t have to justify my decisions to a board of directors, but I’m going to farm like I do.
Bayer’s Leadership Development Program Opportunities for Wheat Members
Every wheat grower is a leader, and has the potential to take on a leadership role within their state or national organization.
One benefit of belonging to the National Association of Wheat Growers (NAWG) is that our members have access to leader development programs at no cost to them.
One of these programs is the Bayer Leadership Program which provides advanced leadership training for state wheat grower leaders who will soon become part of the NAWG Board of Directors or
want to be more involved in their grower associations.
Charlie Vogel, Executive Director for Minnesota Wheat, attended the leadership programs in Sante Fe, NM and Washington, DC.
“It is a great program for those that want to be more involved in their grower associations. It included sessions on leadership styles and communication; major policy and economic issues facing the agricultural industry; and effectively engaging the public through new and traditional media outlets.”
The Bayer Leadership Program includes a skills assessment, agriculture policy overview, and media training just to name a few highlights. NAWG also works with Syngenta on its Leadership at Its Best™ Program. Syngenta has designed an ag advocacy conference which promotes cross-cultural exchange for various commodity and trade associations.
The conference focuses on various aspects of leadership training and the priority issues facing agriculture with the goal of empowering
today’s leaders for tomorrow’s future challenges and opportunities across the industry. To learn more about both opportunities, visit https://wheatfoundation.org/leadershiptraining/.
Minnesota Association of Wheat Growers
Impact from Trade Agreements Still Uncertain
By Dan Lemke, Spirited Communications
Farmers got good news in recent months with the passage of the U.S.-MexicoCanada (USMCA) trade agreement and the signing of a Phase One trade deal with China. How those agreements will affect farmers remains to be seen.
In the newly signed Phase One trade agreement, China has agreed to buy $200 billion of U.S. goods over the next two years, including $80 billion in agricultural products.
“Ag wasn’t the reason we got into a trade war, but we certainly were impacted,” says North Dakota State University Extension Crops Economist and Marketing Specialist Dr. Frayne Olson. “There are still questions about whether or not China will live up to this agreement.”
Olson says that within the Phase One agreement and specifically the agriculture portion, there are targets for each commodity. However, those totals remain confidential.
“My guess is there is a minimum for oilseeds, and the only oilseeds mentioned in the agreement is soybeans,” Olson adds.
Olson says he’s not surprised that China hasn’t made huge purchases of U.S. products just yet. He says it is going to take time for their purchases to ramp up. Since the Phase One agreement doesn’t specify amounts for each commod-
ity, just a dollar count, Olson says China could purchase nearly any agricultural product including highdollar products like meat, processed foods or fruit.
“Will China buy U.S. soy like they have in the past? I don’t think so,” Olson says. “The supply chain has changed.”
Uncertainty over when China will make purchases and how that will impact prices makes it challenging for farmers to make marketing plans. Since the agreement just went into effect weeks ago it’s too early to tell just how and when farmers will benefit.
“China is going to buy when they need to, and they have a huge portfolio of products to choose from,” Olson says. “It will have a volume impact when they do start to buy.”
CORONAVIRUS
An outbreak of Coronavirus is slowing down trade, Olson says. The outbreak is limiting movement to China and within the country. China is trying to control it, so they’re limiting the flow of feed and meat within country and are trying to limit the spread of the illness. It is slowing down the Chinese economy.
The key question regarding Coronavirus is whether the issue is resolved quickly or if it is a long-term problem.
“In my opinion, there will be some negative market attitudes until it peaks and slows down,” Olson says.
Phase One went into effect Feb. 14. Olson expects purchases to pick up now that the date has passed. Corn and wheat could be among the first purchases China makes, not soybeans, Olson says. That could be the case partially because the U.S. has lost its position as a soybean provider.
“Brazil is now the dominant source of soybeans. In my opinion,” Olson contends, “the U.S. in now a residual soybean supplier. Instead of being the first phone call they make, we’re down the line.”
The U.S. and China are starting to negotiate a Phase Two trade agreement. The countries could impart the structure of Phase One into Phase Two.
“My fear is Phase One could be used as a negotiation chip for Phase Two. We
have two years of details, but beyond that it gets fuzzy,” Olson says.
China has lost millions of hogs to African Swine Fever. However, Olson says, soybean meal consumption has not dropped as much as many industry experts expected. He says Chinese companies are now feeding hogs much longer and raising bigger pigs while trying to rebuild their domestic hog herd as quickly as possible.
Olson says the USMCA trade deals isn’t a lot different than its predecessor, the North American Free Trade Agreement. Olson expects short term impacts to be minimal, but long term, the agreement will have more benefits. USMCA contains changes on how new technologies receive approval, including global innovation like gene editing.
Allocating Economic Resources
By Dan Lemke, Spirited Communications
Midwest farmers have had a difficult time in recent years maintaining profitability. Bryon Parman, North Dakota State University (NDSU) Extension ag finance specialist says farmers have faced an unprecedented period of below average net farm income.
“We haven’t had a commodity price increase to turn things around, so farmers have had to look internally,” Parman says.
During a difficult farm economy, farmers often look to increase their efficiency in order to maximize their dollar investment. Parman says economic efficiency is when all goods and factors of production in an economy are distributed or allocated to their most valuable uses and waste is eliminated or minimized.
Parman says there are two ways to evaluate if farmers are being efficient. One way is through production efficiency. That means farmers hold inputs constant and evaluate the output quantities.
“Could more be produced using the same inputs if they were allocated differently? For instance, could you farm more acres with the same equipment,” Parman asks.
Another method is to hold output quantities constant and evaluate inputs. In this case, farmers can consider if equipment is sitting idle for long periods
of time, or if there are periods of the year when labor is not fully utilized. Parman says considering economies of scale means spreading certain fixed or operating costs out over a larger portion of outputs. Leveraging economies of scale will help lower average costs per bushel, but only to a point.
“Eventually, getting bigger can cause production efficiency issues and limit flexibility,” Parman says.
Parman says diseconomies of scale occur when getting bigger increases the cost per unit. This can occur if management is stretched too thin and yields suffer, or costs increase dramatically. Inflexibility can occur if operations become sufficiently large, making it difficult to adjust to different cost or market conditions.
“For example,” Parman says, “cash rents go up to very high levels, but you have to continue farming the expensive rented ground to spread equipment costs over more acres.”
Economies of scope utilize existing capacity and additional resources to produce joint outputs more
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cost effectively. This occurs through the reduction in per-unit production costs by employing under-utilized assets to produce outputs.
“This could be a farmer using existing equipment, land, and grain storage to produce corn and cattle,” Parman explains. “It would cost more per bushel and more per pound of beef produced to produce one or the other by itself.” Parman says that concept would also apply to someone who has 3,000 acres of soybeans only versus a farmer who has 1,000 acres of soybeans, 1,000 acres of barley, and 1,000 acres of corn.
Diversification can help lower costs per unit and risk through economies of scope. However, Parman says to be effective, diversification has to utilize existing infrastructure like land, labor or equipment that farmers would have needed to employ anyway. Diversification could include crop and livestock enterprises, geographic diversification or even off-farm employment.
Diversification could also include utilizing the entire growing season more effectively. Many of North
Dakota’s crops have different planting dates and harvest dates. Growing a variety of crops may spread the planting and harvest windows out to make optimal use of labor and equipment.
Increased diversification does require more management skill and time. Parman says activities should also match the available resources.
To help farmers make management decisions, NDSU Extension offers a Crop Compare tool. This online resource allows farmers to select one crop, enter estimated market price, yield, and input costs for that crop and compare those crops for expected profit or losses. The Crop Compare tool is available at www. ag.ndsu.edu/farmmanagement/documents/2019crop-compare/view.
Striving for economic efficiency is an ongoing challenge. Parman says diminishing marginal returns and changing input prices versus output prices mean production decisions should be reevaluated every year.
1) Leveraging economies of scale will help lower average costs per bushel – but only to a point. Eventually getting bigger can cause production efficiency issues and limit flexibility.
2) Diversification can help lower costs per unit and risk through economies of scope. To be effective, it generally has to utilize existing infrastructure like land/labor/ equipment that you would have needed to employ anyway.
3) Diminishing Marginal Returns and changing input prices vs. output prices may require us to conduct yearly re-evaluations on production decisions.
Board members elected to Minnesota Wheat Research & Promotion Council (MWRPC)
In January, wheat producers in the state of Minnesota elected members to their board of directors.
In Area 1, Mikayla Tabert, Red Lake Falls was newly elected.
Mikayla currently farms with her husband, Benjamin and her parents. They raise wheat, corn, soybeans, tall fescue, sunflowers, peas, cereal rye, alfalfa, and beef cattle.
Tabert stated, “I would like to serve on the MN Wheat Council to further encourage the wheat industry to work towards sustainable and regenerative practices, while increasing farm profitability. Low crop commodity markets
and high land and input costs have made profit margins low, but I believe that if we as farmers continue to work towards more efficient uses of resources, we can be profitable even with poor markets. To do so, we need replicated, unbiased research that will show us what is profitable and sustainable. This would help us decrease our carbon footprint, while providing safe, nutrientdense food, which will improve the public’s perception of the farming industry.”
In Area 2, Mark Jossund, Moorhead, was re-elected.
Mark has served on the MWRPC board since 2006.
Mark currently raises wheat, soybeans and corn. Jossund was asked why he wanted to serve on the MWRPC. He wants to help support on farm research to find more ways to keep wheat profitable on the farm. Jossund also supports US Wheat to promote wheat around the world.
In Area 3, Scott Lee, Benson, was also re-elected.
Scott has served on the MWRPC board since 2011 and currently raises wheat, soybeans and corn.
Lee stated he wanted to serve on the MWRPC, to continue to help direct checkoff dollars for wheat production
research and promote export and domestic end use of wheat.
Beginning July 1, Tabert, Jossund and Lee will serve three-year terms on the MWRPC.
Board members direct Minnesota wheat checkoff dollars for wheat promotion and research activities.
Board members must be wheat producers willing to serve as leaders and advocate for the Minnesota wheat industry and work to improve industry profitability and viability.
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Handle With Care
By Dan Lemke, Spirited Communications
Few farmers across Minnesota and North Dakota harvested under ideal conditions. Most growers battled excess rain and soggy soils trying to gather their crops. The evidence of what kind of harvest farmers had is written on farm fields across the region.
Farmers who were able to get harvest done and fall tillage accomplished in a business as usual fashion are the exception. Some growers were able to get crops harvested but were unable to get any fall tillage work done. Still other farmers are waiting to finish harvest as tens of thousands of acres of standing corn remains across northern Minnesota and North Dakota. Still other producers got their grain harvested but left some damaging ruts in the field.
Each of the scenarios that farmers face can potentially have long term impact on soil structure and productivity.
North Dakota State University (NDSU) Assistant Professor of Soil Physics Dr. Aaron Daigh says that crop residue left on the surface keeps water from going up into the atmosphere via evaporation. Meanwhile, soil compaction keeps water from going down.
Research shows there is a 70 percent drop in soil water evaporation rates with oneinch thickness of residue compared to bare soil. However, after about a week of dry weather, evaporation rates are nearly the same.
Daigh says soil temperature has a lot to do with the amount of water that can escape. Different tillage practices from chisel plowing to strip tilling and
no-till product will result in varying spring soil temperatures and moisture levels.
“You will see a difference in temperature and moisture level at spring planting. Will it affect yield later in the year? Not as much as you’d think,” Daigh says.
Farmers may be tempted to increase their tillage this spring to try out soils, but Daigh says that won’t solve the problem.
“Tillage won’t dry out soil if you have a drainage problem,” Daigh explains.
STILL STANDING
If growers are still waiting to get their remaining crops out of the field, Daigh urges farmers to avoid making ruts at all costs.
“Be patient waiting to get out there. Early snow has insulated the ground, so the frost is not very deep,” Daigh says.”
Farmers should also try
to minimize tillage because Daigh says if the soil is too wet to plant, then it is too wet to till.
Daigh says farmers will also need to adjust their planters to deal with high residue conditions before each field. That means adjusting row cleaners, leveling planter bars, adjusting down pressure and closing wheels. Disc openers also need to be sharp.
If conditions remain wet, Daigh says growers may need to consider taking prevented planting.
In the haste to get crops harvested or planted, compacting soils has a negative affect on soil health and yield. Multiple years of research shows that avoiding compaction has long-term implications. “If you have rutted fields, next year’s crop yields will not be as high as you want no matter what you do,” Daigh says. “Compaction is a multi-year consequence
and repairing compaction is a multi-year process.”
Data from the University of Minnesota shows that both corn and soybean yields are substantially reduced in rutted areas due to compaction.
DEALING WITH RUTS
When soils are compacted, Daigh says they reduce their ability to drain water. If ruts have been made in fields, Daigh recommends farmers to level off soil ruts by tilling only as deep as the rut itself. Ruts should be filled in and leveled just enough for spring planting. Because subsoil dries slower than topsoil, deep tilling into wet subsoil will cause more compaction and smearing.
For ruts less than 4 inches deep, Daigh says a disc, cultivator, vertical till implement or other typical secondary tillage implements should suffice. For ruts deeper than 4 inches, farmers may need several passes with a chisel plow to fill in the ruts.
Regardless of the time of year or soil conditions, Daigh says soil compaction can be limited by properly adjusting implement tire pressures, minimizing the number of field passes, minimizing load size, controlling field traffic and avoiding wet soils. Overall, he says, patience is required.
Daigh is also a proponent of reducing tillage because mechanical tillage homogenizes soil and can either weaken or compact soil structure. Tillage can also reduce drainage, which can keep soils wetter, longer. Reduced tillage allows soils to aggregate and lead to better drainage in most soils.
Strategies for Any Year
• Properly adjust tire pressures
• Minimize # of field passes
• Minimize loads
• Control traffic
• Avoid wet soils
• Patients
Strategies
for Ruts
• Level off soil ruts by tilling only as deep as the soil rut…
• Fill and level just enough for spring planting
• Subsoil dries slower than topsoil
• Tilling into wet subsoil will cause more compaction and smearing
• For ruts < 4 inches:
• Disc, cultivator, vertical till, your typical secondary tillage implements
• For ruts > 4 inches:
• Chisel plow for ruts deeper than 4 inches
• Will likely need multiple passes
Why I Invested in Drainage
By Dr. Lindsay Pease, Extension Nutrient Management Specialist
This past fall, I made the decision to invest in a new subsurface drainage system at the Northwest Research & Outreach Center (NWROC) in Crookston.
Over the next several years, I will be taking northwest Minnesota farmers on this journey with me as I evaluate my investment. Like any major financial investment, there is some amount of risk involved in this decision. Times are hard right now, and not everyone can take on the risk of installing a new subsurface drainage system. We are doing this to help you decide whether investing in drainage is right for your farm. I was willing to take this on because I do not be-
lieve that installing drainage is that much of a risk. I invested in drainage because I believe it will improve the profitability of our operations.
Previous drainage research conducted at NWROC from 2001 to 2004 indicates that we should look beyond grain yield as the only way to profit from subsurface drainage installation. The study showed that drainage had a limited impact on grain yield, but it increased grain protein content in spring wheat and soybeans. This research also found that subsurface drainage increased soil temperature.
Higher soil temperature combined with lower soil moisture improves field workability in the spring and fall. This will save another valuable resource
during planting and harvest: time.
This past October 2019, I designed and installed our new subsurface drainage system with the help of Ellingson Companies.
The system currently drains 30 acres of a 60-acre field owned and farmed by the NWROC. I divided the 60-acre field into four 15-acre plots: two drained and two undrained. We designed the system so that we have the option to install drainage on the other 30 acres in the future.
My plan is to monitor the improvement in crop yield compared with our historical averages and calculate the return on investment for our newly-drained field. I am also partnering with Extension soil health specialist Anna Cates to
look at changes in carbon pools now that we have made a fundamental change in soil conditions.
I will also measure the amount of fertilizer (nitrogen and phosphorus) lost in both surface runoff and subsurface discharge. If we see high levels of fertilizer coming off the field, I will work with our NWROC farm manager and our Extension nutrient management team on different strategies to lower the concentrations. Lowering fertilizer application rates is by no means the only way to reduce nutrient loss in drainage discharge.
We can also look at how to place fertilizer so that it avoids transport into tile drains, and when to delay fertilizer applications based on the weather forecast. Our goal will be to minimize fertilizer losses while maintaining a profitable operation.
Installation Day 1: October 17, 2019. The two lift stations were installed first. This image shows the lift stations on a truck, and the excavator machine ready to break ground. The field is still wet, as can be seen by the muddy tracks left by the excavator.
Dr. Lindsay Pease
Down the line, I would like to build on this research by exploring new ways to filter residual nutrients out of drainage water without impacting in-field operations. Two notable examples of current technologies that can do this are denitrifying bioreactors and phosphorus removal structures.
Any profit we make from our farm operations goes right back into a general fund to support the research that goes on here. That means that our investment can pay off in more ways than one. If we can increase profits on this field, it will help NWROC faculty and staff keep answering the critical questions that you have about agriculture in the Red River Valley.
Keep track of the project by following Lindsay on Twitter (@LPeaseUMN)
UMN Nutrient Management on Facebook (UMN Extension Nutrient Management) and Twitter, (@ UMNNutrientMgmt) and subscribing to Minnesota Crop News email alerts (https://blog-crop-news. extension.umn.edu/).
Lindsay will be presenting updates at events across the state in the future, including NWROC’s annual Crop & Soils Field Day in Crookston on July 15, 2020.
Dr. Pease helps the crew from Ellingson join two pieces of drainage tile together during installation. (Photo: Mike
Source: University of Minnesota Extension/ Minnesota Crop News. Reprinted with Permission. Water pumping out of the lift station on November 18, 2019.
Enright of Ellingson Drainage)
Do Spring Sulfur Applications Increase Yield at Harvest?
By Melissa Geiszler, MN Wheat Research and Promotion Council
With the increasing amount of sulfur (S) deficiency in spring wheat fields seen early in the growing season in northwestern MN, many producers wondered how beneficial spring sulfur applications would be for increasing wheat yield. In response, MN Wheat’s On-Farm Research Network (OFRN) began a project with MN’s Agricultural
Fertilizer Research and Education Council in 2017 to determine whether or not a spring sulfur application made a measurable effect on yield at harvest.
TRIAL SETUP
The on-farm trials took place at 15 locations from 2017-2019. Ammonium sulfate (AMS) was broadcasted at 100 lbs per acre in the treated strips and compared to a no-sulfur control (N was balanced with urea between the treatment and control).
The sulfur treatment and control strips were replicated 3-4 times in the field. Individual plots were typically 140 ft wide, depending on the size of the spreading equipment, and ran the full length of the field.
At harvest, yield was measured by weighing one pass of the combine through each plot in a weigh wagon or grain cart with a calibrated scale. Grain was also sampled from each plot to measure
moisture content, protein content, and test weight.
RESULTS
After combining three years and 15 locations of data, we found no significant yield or protein differences between the S treatment and the control (Figure 1), with only one of the locations from 2019 showing a significant yield response to sulfur.
Similarly, the University of Minnesota tested several locations of sulfur applica-
Sulfur-deficient wheat. Photo by Dave Mengel, K-State Research and Extension.
tions to spring wheat in two small plot studies in northwest and central MN during 2008-2016, but did not find a yield or protein content response to sulfur applications in the majority of their locations (Kaiser et al., 2019). Their data suggested that soils with more than 2.0% organic matter are not likely to show a yield or protein increase in response to sulfur. They did find that on sandy, irrigated soils in central MN, spring wheat showed a positive yield response to sulfur, and as little as 7 lbs S per acre was enough to maximize wheat yield and protein.
This may explain some of the results from Figure 1, since none of the 15 locations had soil tests with less than 2.0% organic matter.
SO, SHOULD I APPLY S TO WHEAT?
When driving around the countryside in the spring in the weeks following planting, invariably there are whole fields or fields with patches of yellow wheat. While a tissue test should be used to properly diagnose whether the problem is S, N, or something else, it’s safe to say at least some (or likely most) of the yellowing in the field during that time is
due to sulfur deficiency. If we know sulfur deficiency is out there, then why doesn’t it show up in the yield data?
It comes back to having the right conditions.
As with nitrate, S in the sulfate form is mobile in the soil and may leach in excessively wet conditions. In cold, wet springs like the ones in recent years, sulfur mineralization from the soil’s organic matter is minimal to very low until the soil warms up, leaving young wheat plants left hungry for S soon after emergence. These condi-
tions not only occur sandy soils with low organic matter, but can also occur in low areas or hilltops where S has either leached away or where the organic matter has not supplied enough S to meet crop demand.
It can be difficult to test the variable response to S fertility with small plots since they are often placed in the more productive parts of the field. In the larger OFRN strip trials, small within-field variations in sulfur deficiency and a yield
continued on page 16
Figure 1
Figure 2
response to S application are difficult to detect at harvest if they deficiency did not span the majority of the harvested plot.
Another possible reason why we may not have seen a yield response to S is because of small amount of S required by the crop, compared to the larger quantities of N, P, and K that are needed. The current UMN recommendations for spring wheat are to apply 25 lbs S per acre broadcasted or 10-15 lbs S per acre with the drill prior to or at planting on sandy, low organic matter soils. NDSU currently recommends applying 10
lbs S per acre at planting on all spring wheat fields. It is likely this small amount was supplied by the soil, or may have been present as a small residual from S applications made in years past at the test locations.
While applying S to wheat may not pay every year single year, applying 10 lbs S per acre at planting is insurance so that if conditions for S deficiency do develop in the field, the young wheat plants can continue growing vigorously during critical early growth stages.
For more information about the OFRN sulfur trials, see
the full report available online at https://mnwheat.org/ farm-research-network/
ABOUT THE ON-FARM RESEARCH NETWORK
MN Wheat’s On-Farm Research Network conducts field-scale replicated strip trials to answer the production questions of wheat producers in MN. Funding for this research has been provided by the MN Wheat Research & Promotion Council and the Agricultural Fertilizer Research an Education Council. Questions can be directed to Melissa Geiszler, On-Farm Research Coordinator, by email at mgeiszler@mn-
wheat.com or by phone at 218-253-4311 Ext. 8.
REFERENCES
D.E. Kaiser, A.K. Sutradhar, and J.J. Wiersma. 2019. Do hard red spring wheat varieties vary in their response to sulfur? Agron. J. 111:2422-2434.
contact Melissa Geiszler at 952-738-2000 or mgeiszler@mnwheat.com
A Northern Disease Migration
By Dan Lemke, Spirited Communications
Soybean diseases that for years had been limited to fields in the southern United States are making their way to farms in Minnesota and North Dakota.
Dr. Dean Malvick, University of Minnesota Extension plant pathologist says changing weather patterns that feature more rain and humidity are increasing the disease risk. Global travel and trade, new soybean varieties and changes in crop rotations and cropping systems are having an impact. Time is also a factor.
“Problems tend to increase the longer we have soybeans in a particular field,” Malvick says. “Issues tend to build up over the years.”
Malvick says soybean cyst nematode is a good example of a southern problem that’s moved north over time. Some other “southern” diseases are showing up in northern soybeans.
“We don’t want any of them,” Malvick contends, “but the fact is, they’re already here or they’re coming.”
FROGEYE LEAF SPOT
Historically uncommon in Minnesota, Frogeye Leaf Spot (FLS) instances increased in 2018 and 2019. Malvick says the disease reached high levels in a few Minnesota fields in 2019. FLS shows up as brown spots on leaves, surrounded by a dark reddish brown or
purple ring. Spots can coalesce, fall off and kill large portions of soybean leaves. The FLS pathogen thrives in warm, humid weather.
“Frogeye Leaf Spot has been an issue south of I-80 for decades. The disease has been showing up more here in the last few years,”
Malvick says. “Some fungicides were used in Minnesota last year, but fungicide resistance is becoming an issue in some areas.”
Malvick says soybean yield losses of up to 30 percent have been reported in the southern U.S.
Best FLS management options include planting resistant soybean varieties, crop rotation and tillage. Foliar fungicides can be effective as well. Malvick says there is no definite threshold for FLS, but growth stage, disease level and varietal susceptibility are key factors in determining if fungicide applications are necessary.
“Use fungicide products that contain active ingredients from different fungicide classes for efficacy and resistance management,” Malvick adds.
WHITE MOLD
White mold is not a new disease and it doesn’t just occur in soybeans.
“It’s one of the most common diseases we have,” Malvick says.
White mold thrives with high moisture and humidity
during flowering, followed by cooler temperatures during and after flowering. White mold also is more common in fields with high soybean plant population. High soil fertility, especially manure, can also increase the presence of white mold. Field history is also an important factor. “Know your fields, and if you can, pick a seed variety with white mold resistance,” Malvick says.
Other factors that reduce the risk of white mold included decreasing planting density and increasing row spacing. Malvick suggests farmers consider fungicide application when rows are filling and the white mold risk is high.
A gall midge, different from the soybean gall midge, feeds on white mold. However, Malvick says it’s not a realistic biological control because the white mold grows faster than gall midge can eat it.
SUDDEN DEATH SYNDROME
Sudden Death Syndrome (SDS) has been spreading north and west into states including Minnesota, Nebraska, and Wisconsin. Severe SDS can result in yield losses greater than 50 percent. While SDS is primarily a root disease, it typically also affects leaves and causes defoliation.
SDS risk factors include the presence of the SDS pathogen and a field history of the disease. SDS thrives in compacted soils with
Dr. Malvick, U of M Extension plant pathologist says changing weather patterns that feature more rain and humidity are increasing the disease risk.
poor drainage and also prefers areas in fields with high SCN populations. Susceptible soybean varieties increase risk for SDS, as do rainy conditions through July and August.
Malvick suggests farmer begin looking for the disease the first week of August. SDS often first appears in low, poorly-drained, or compacted areas. Symptoms include yellow, diffuse spots on leaves.
“SDS isn’t widespread, but it’s likely to become an increasing problem,” Malvick says.
Planting soybean varieties resistant to SDS and using specific seed treatments can help reduce SDS impacts.
continued on page 18
BROWN STEM ROT
Years of soybean production can increase the risk for Brown Stem Rot (BSR), which can cause yield losses of up to 30 percent, although Malvick says 10 to 20 percent losses are more common. The BSR pathogen infects the inner stem, and symptoms may or may not be visible without splitting stems of infected plants.
BSR can cause significant yield reductions, and plants without visible symptoms on leaves may also suffer yield losses from five to 15 percent. BSR can cause premature senescence of infected plants.
Infestations are often most severe when cool temperatures and wet soils are present during pod fill, followed by dry soils. As with other soybean diseases, crop rotation and resistant soybean varieties are the best methods for combatting BSR.
Malvick says changing weather patterns and crop varieties lead to changes in soybean diseases and their risks.
“We don’t know what disease risks are over the horizon and around the bend,” Malvick says. “But we also can’t ignore established problems like white mold, SCN and others.”
Malvick recommends that farmers watch their fields for disease symptoms and stay informed on what’s out there. A good source for information for growers
comes from the Crop Protection Network. Descriptions and photos of common soybean diseases and management options are available online at https:// cropprotectionnetwork.org/.
Capture the value of today’s best genetics. Plant North Dakota Certified Seed.
Pay Attention to Soybean Yield Threats
By Dan Lemke, Spirited Communications
Identifying an issue is a key factor in treating the problem. North Dakota State University (NDSU) researchers surveyed 400 fields, scouting for soybean stem diseases to determine what problems were present and which ones posed an economic threat.
A variety of root diseases were identified, including anthracnose, stem canker and charcoal rot.
“Anthracnose not an economic problem in soybeans, but it can be confused with other diseases,” says NDSU Extension Plant Pathologist Sam Markell. “Northern stem canker in some cases can cause yield impact, and charcoal rot, in some environments can lead to yield loss.”
Markell says researchers found more stem diseases than expected in North Dakota, and he suspects farmers in Minnesota likely are facing the same problems.
“We’ve got a few more diseases that I didn’t expect,” Markell says. “It’s important to know what they are because some cause yield issues, some don’t.”
Information on soybean stem diseases, including how to identify them is available at www. ag.ndsu.edu/extension.
A PERSISTENT PEST
Soybean cyst nematode (SCN) is a growing problem for northern soybean growers. The parasitic worm can cause substantial yield loss with few above-ground symptoms. Not only does SCN feed on soybeans, dry edible beans and even
some weeds can be hosts. SCN favor average to dry soils that are high in pH. SCN spreads with anything that moves the soil including farm equipment, water and wind.
A vital first step in managing SCN is for farmers to know if they have an infestation. North Dakota Extension has a sampling program. Farmers can get sample bags from their county Extension office, mail in soil samples and get data returned by mail.
Markell says about 70 percent of samples tested in the past six years have been negative. But numbers in some areas are exploding. Samples with 10,000 eggs per 100 cubic centimeters of soil are considered high. Some hotspots have been discovered with 40,000 to 60,000 eggs per 100 cubic centimeters.
farmers better manage the pest.
MANAGE THE PEST
The best way to manage SCN, according to Markell, is to keep egg numbers low. The first step is to find soil test to find out if SCN are present and at what level.
Planting resistant soybean varieties that don’t allow the parasite to multiply is a major SCN management tactic. There are two major resistance genes found in soybean varieties: PI88788 and Peking. Some SCN populations have overcome the PI88788 resistance, but Markell says the gene is still largely effective in Minnesota and North Dakota.
“Rotate resistance like you rotate herbicides,” Markell says. “Rotate resistant varieties and resistances between PI88788 and Peking genes.”
“We know SCN is moving north,” Markell says.
The SCN Coalition was formed in 2018. The Coalition is a made up of universities, state soybean checkoff boards as well as agriculture companies all committed to combatting SCN and helping
Planting non SCN host crops like corn and wheat can help reduce egg numbers. Treating seed with a nematicide can help, although Markell says there is limited data on seed treatment’s ability to affect egg numbers.
“Work to control SCN numbers proactively. Take soil samples, rotate crops and resistance to try to stay on top of it,” Markell says. “It’s a situation we can manage.”
For more information on SCN and the SCN Coalition, visit www. thescncoalition.com
More Than Meets the Eye
By Dan Lemke, Spirited Communications
Technology continues to shape the evolution of modern agriculture. North Dakota State University (NDSU) Extension Agronomist Dr. Joel Ransom and fellow researchers wondered if drone-collected normalized difference vegetation index (NDVI) data could help them estimate yield and protein potential in wheat.
“There may be some lessons we can learn from digital data collected by drones,” Ransom says. “Can we use digital data to make better decisions?”
NDVI measures the ratio of the near-infrared and red light reflected from an object. NDVI readings are more precise than the human eye. Higher NDVI values may equate to better plant health, more nitrogen in plant tissue, and therefore, potentially more yield.
Ransom says the NDVI readings have many potential uses, but one intriguing possibility is to help with nitrogen management deci-
sions. Nitrogen affects leaf color, which can be detected through NDVI. Nitrogen is one of the most expensive fertility inputs. Having predictive in-season data could help guide farmers with in-season nitrogen application decisions.
In-season application of NDVI sensing in wheat has been limited, Ransom says. Researchers wondered if they could make prescription maps for nitrogen in hard red spring wheat using that data.
continued on page 22
Dr. Joel Ransom, (NDSU) Extension Agronomist
GATHERING DATA
Research was undertaken in 2018 and 2019. NDVI data was collected from dronemounted sensors multiple times during growing the 2019 growing season. The test fields had nitrogen-rich strips, fertilized at 1.2 to 1.5 times normal fertility rates as well as nitrogen-limited strips, fertilized at .75 times the normal rate. The drone data was compared to satellite NDVI images from the previous season and yield maps from the 2019 harvest.
although the technology may be the most useful in situations when soil factors limit yield. In fields where yield data are lacking, the NDVI imaging may be a way to help farmers start to identify production zones.
Given the variability of yield, managing inputs by production zones has merit, Ransom says. NDVI maps of the previous season may be useful but less so than in-season from wheat.
Ransom says farmers who are interested in using NDVI technology may need to enlist the help of software or a third party to develop production zones.
Research shows that wheat protein in the test fields was generally negatively associated with yield. The higher the yield, the lower the protein.
“To the extent we can predict yield with NDVI we can predict protein,” Ransom says, “although there are some important exceptions.”
Also, predicting protein with NDVI directly wasn’t possible, but it could be estimated indirectly by predicting yield. Eye continued from page 20
Ransom says extra nitrogen in zones that are likely to be high yielding may be best strategy for optimizing nitrogen for protein and yield. Substantial variability in yield suggest benefits from variable rates of nitrogen.
Ransom says research shows NDVI inconsistently predicted yield, but the data could be a start in defining zones in absence of yield maps or to augment yield map information.
Ransom says the NDVI inconsistently predicted yield,
Drones and data collection are relatively simple, but the process of flying fields can be slow and it takes time to analyze data.
The Bad and The Ugly
By Dan Lemke, Spirited Communications
Wheat and barley growers are facing an everincreasing threat from Bacterial Leaf Streak (BLS). The disease can be found across the globe and has become more prominent in Minnesota and the Dakotas in recent years.
BLS invades the plant either through leaf pores or injury caused by wind or hail. The bacteria can spread by rain splash, irrigation, plant-to-plant contact and even by feeding insects. BLS can occur in wide temperature range, but does appear to prefer warm, humid conditions.
North Dakota State University (NDSU) Extension
Cereal Plant Pathologist Dr. Andrew Friskop says wheat plants appear to be most susceptible to BLS at flag leaf stage. BLS can be identified by dark brown, watersoaked streaks on the leaves and bacterial ooze that is especially visible when the leaves are wet. Black chaff will also start to appear on
the seed head. Plant leaves will show signs of necrosis. “We don’t have a treatment option, so the best defense is host resistance,” Friskop says.
NDSU researchers conducted variety trials at a number of locations. BLS resistance was among the characteristics the scientists examined, applying a score to indicate a variety’s resistance level. Varieties with scores of 2 to 3 showed good BLS resistance, ratings of 5 to 6 were middle of the road and did show some leaf browning and necrosis. Varieties that scored an 8 or 9 were susceptible to BLS and were at risk for substantial yield loss.
The NDSU research showed significant yield differences between resistant and susceptible varieties. Friskop says varieties with a BLS resistance score of 5 were the breaking point. Any lower ratings and significant yield loss occurred.
“Above a 5, yield loss really picks up,” Friskop says.
“Looking ahead, a 5 and
above is a good place to start. Farmers planting an 8 or 9, could see 50 percent or more yield loss.”
FUSARIUM HEAD BLIGHT Friskop says fusarium head blight (FHB) was a widespread issue in 2019. Vomitoxin levels were high and test weights were low as a result.
While resistant varieties are a key defense against scab, Friskop says research shows well-timed fungicide treatments can be a big help in minimizing scab’s impact. Treatments for hard red spring wheat and barley do come with a limited window for maximum effectiveness.
“FHB fungicide timing should occur at earlyflowering for wheat and at full-head for barley, and up to 4-7 days after,” Friskop explains.
Friskop says wheat researchers in ten states tested a relatively new wheat fungicide from Syngenta called Miravis® Ace for its effectiveness in suppressing scab. The research
Dr. Andrew Friskop, NDSU Extension Cereal Plant Pathologist
showed Miravis Ace was an effective product, and application timing is similar to other fungicide products.
Wheat and barley growers are concerned with the impact thousands of acres of standing corn in North Dakota and Minnesota will have on scab. Friskop says corn is a host for fusarium and the more residue is available, the better the chances the fungus will survive the winter and cause problems in the year ahead.
“Spring will tell,” Friskop explains, “but there’s a pretty good inoculum load heading into spring 2020.”
Source: NDSU
Wheat and Soybean Fertility
By Dan Lemke, Spirited Communications
Nutrients play a vital role in crop production. North Dakota State University NDSU) researchers regularly update their fertility recommendations for field crops like wheat and soybeans.
NDSU Extension Soil Scientist Dr. Dave Franzen says recommendations are not yield goal-based, they’re based on economics.
For wheat, Franzen says research shows starter phosphorous is important
to wheat productivity while chloride and micronutrients are of minor importance, unless soil organic matter above 10 percent. Nitrogen, meanwhile, is a key nutrient and NDSU offers an online nitrogen calculator that helps farmers make fertility decisions.
“Use the N calculator for wheat for the most profitable N rates,” Franzen explains.
“Use common sense to determine the rate best suited to your farm and variety.”
Franzen says yield goals are not a factor in determining nitrogen rates.
Farmers can download an app for Android and iPhone. The app includes the available nitrogen calculators for corn, wheat and sunflowers.
Chloride is not as important for wheat as it is for malting barley especially if soil test is low. Chloride increases plump and helps to reduce the effect of lower barley yield due to reduced kernel size.
SOYBEAN FERTILITY
Iron Deficiency Chlorosis IDC) is a concern in Eastern North Dakota. Iron makes up about 5 percent of North Dakota soils by weight.
Only a tiny fraction is ever available to plants. As soon as ferrous iron is exposed to oxygen, it oxidizes to oxidized or ferric iron. Ferric iron is a trillion times less soluble than ferrous iron. Plants implement iron uptake strategies to improve iron nutrition and avoid deficiency.
In soybeans, iron is mobile in the plant from germination through the first mono-foliate leaf. As the first trifoliate leaf emerges, iron becomes immobile in the plant and must be taken up continually through the season to avoid deficiency.
The soybean strategy for iron uptake begins by soybean roots acidifying the soil environment directly around the soybean root. An acidic soil environment is necessary for the activity of an iron-reducing protein that the soybean root secretes. If the root remains acidic, the iron-reducing protein contacts oxidized iron and reduces it to soluble ferrous iron, making it available to the plant
NDSU research shows the best application to reduce IDC is an orthoortho-EDDHA iron chelate applied with water in-furrow at seeding. The ortho-ortho-EDDHA not only succeeds in delivering iron to the plant root early in the season, but it also has the ability to go back into the soil solution, bind to additional iron and deliver it to the plant root with the soil water stream.
Research shows that soybeans and soil salts don’t go together well. Soybean yields were reduced by 15 percent with a soil electrical connectivity (EC) rating of 1.5. Because soybeans may not thrive in all soils, Franzen says it’s important that growers plant the crop in a favorable environment.
“Selecting which fields will support a successful soybean crop is not a trivial thing,” Franzen says.
Franzen says fields with low carbonates or slightly acid soils are preferred. Select fields with EC no higher than 1.5 and parcels
with decent drainage. If soybean will be planted in a field for the first time, the seed will need to be inoculated with soybean inoculum. Several inoculums types can be used: peat-based, liquidbased or granular.
NDSU research shows that inoculation is not necessary or helpful if the field has had a successfully nodulated soybean field within the past 4 years.
“Supplemental nitrogen is not helpful unless the nodulation is a total disaster and the leaf tissue indicates a nitrogen deficiency,” Franzen adds.
There’s an App for that...
There is an App for Android and iPhones for the 3 N calculators, including wheat.
Go to the App store and search for North Dakota Crop Nitrogen Calculator and follow the instructions. It is free to download.
Phosphorous is only needed for yield increase when soil test shows 7 parts per million or less. NDSU research indicates that broadcast or band-seed separated phosphorous is best. Seedplaced phosphorous does not increase yield in most trials and can decrease yield, especially if the soil becomes dry after seeding. Franzen says in-season
foliar sprays for nitrogen, phosphorous and potassium are almost never effective at achieving a financial payback, let alone generate a profit.
NDSU’s entire updated soybean fertility information is available online at https://www.ag.ndsu. edu/publications/crops/ soybean-soil-fertility.
Farm Groups Join Forces for Sustainability and Responsible Climate Policy
Twenty-one farm groups publicly launched Farmers for a Sustainable Future, (FSF) https://www.fb.org/ land/fsf . The coalition’s mission is to share U.S. agriculture’s commitment to sustainability and the tremendous strides that have already been made to reduce agriculture’s environmental footprint.
FSF will serve as a resource for lawmakers as they consider climate-related policies, providing its guiding principles as a foundation to further advance adoption of conservation programs. FSF’s principles call for policies that support sciencebased research, voluntary incentive-based conservation programs and investment in infrastructure.
Corn farmers have long been leaders in working to improve the quality of soil, water and air around our farms through NCGA programs, including the Soil Health Partnership (SHP).
More about the coalition, guiding principles and sustainability achievements can be found at sustainablefarming.us.
Also, USDA Secretary Perdue announced a new USDA departmental initiative called, “The Agriculture Innovation Agenda” https://www.usda. gov/media/press-releases/2020/02/20/secretaryperdue-announces-newinnovation-initiative-usda.
The members include American Farm Bureau Federation, American Pulse Association, American Sugar Alliance, American Soybean Association, National Association of Wheat Growers, National Barley Growers Association, National Cattlemen’s Beef Association, National Corn Growers Association, National Cotton Council of America, National Council of Farmer
Cooperatives, National Farmers Union, National Sorghum Producers, National Milk Producers Federation, National Pork Producers Council, National Sunflower Association, Southern Peanut Farmers Federation, United Egg Producers, US Canola Association, US Dry Bean Council, USA Dry Pea and Lentil Council, and USA Rice.
RESILIENCY
RESILIENCY
We represen world’s food, continue to enhancing decades they agricultural productivity
We represen world’s food, continue to enhancing decades they agricultural productivity
Farms Are Boosting Produ While Conser ving Resources
Are Providing
Fine Tuning Soybean Production
By Dan Lemke, Spirited Communications
The 2019 growing season didn’t do many farmers any favors. The combination of a wet spring, late planting, periods of dry weather and early snow made for a challenging year for soybean production.
North Dakota State University (NDSU) Extension Agronomist Dr. Hans Kandel says in addition to planting and harvest challenges, weather conditions also influenced soybean quality in the region.
“We had lower protein in 2019 compared to the tenyear average,” Kandel says. “Oil content was lower, too.”
Weather conditions influence both oil and protein content. Northern-grown soybeans typically have a lower crude protein content than soybeans grown in warmer, southern climates. However, northern soybeans generally have higher levels and a better mix of essential amino acids, the key building blocks that make up crude protein. Essential amino acid levels remained strong in 2019.
NDSU researchers conduct dozens of soybean-related research projects. Among those projects are variety trials from a range of different locations and agronomic conditions. Farmers can gather important information to make planting decisions based on how soybean varieties performed in areas with similar environmental influences.
Results of the 2019 trials are available online at https://www.ag.ndsu. edu/varietytrialS/ soybean/2019-trial-results.
IRON DEFICIENCY CHLOROSIS
Kandel says one of the major soybean production issues for soybean is iron deficiency chlorosis (IDC). IDC is expressed in new leaf tissue by yellowing, while the veins remain green. Leaf tissue and the growing point can die, and yield can be significantly reduced.
Kandel says soil high in salts and carbonates are at increased IDC risk. Iron is an insoluble nutrient, and with increased soil pH, the plant is unable to uptake the required amount of iron.
North Dakota Planted Acres by Crop 2017-2019
Soil conditions prone to IDC are high pH soils, cool wet soils, poorly drained soils and high saline soils.
Planting varieties that are IDC tolerant is one way that farmers can combat the issue.
“The NDSU soybean variety book has IDC scores for each of the varieties we tested,” Kandel says. “There are quite a few varieties within tolerance levels. If you have an issue with IDC, you have to pay attention to IDC score.”
Kandel says that if soybean varieties have a 0.1 difference in IDC score, farmers are giving up a potential 1.1 bushels of yield.
“If you have IDC issues, the score is critical,” Kandel says. “There is a strong correlation between IDC score and yield.”
SEEDING DECISIONS
Other NDSU research focused on row spacing and soybean seeding rates. Researchers tested 12-inch and 24-inch rows with a variety of seeding rates from 80,000 seeds per acre to 200,000 seeds per acre.
“The purpose is to capture as much sunlight as possible. We can manipulate spacing and population to capture sunlight,” Kandel says.
Some seeds don’t emerge, and some plants die
during the growing season, so seeding rate doesn’t equate to live plants.
Kandel says research shows there was some increased yield going from 24-inch to 12-inch rows. More plants growing close together were also able to get more iron from the soil, reducing IDC impacts.
Kandel says research from on-farm tests showed populations of 167,500 plants per acre gave the highest return. Economics play a big role in profitability of seed population. Kandel says if farmers plant a lower cost variety, they may be able to increase seeding rate to maximize profitability.
Planting date is an important factor in determining soybean yield. Kandel says research shows soybeans lose .35 bushels per acre per day yield potential from May 1 through June 1.
Later planted soybeans miss out on yield potential because they don’t capture as much solar radiation.
“If you can plant early, do it,” Kandel explains. “But use common sense.”
Planting a later maturing variety is also preferred. Kandel says farmers can gain as much as .77 bushels per acre for every 0.1 increase in maturity group rating.
Cost of Production: What Is It?
By Jessica A. Hanson Farm Business Management Instructor, Northland Community and Technical College
As a Farm Business Management Instructor and a farmer, I knew that meeting with farmers last fall and winter was going to be full of emotion. There wasn’t a single farming enterprise that had it easy in 2019. Our crop farmers dealt with falling numbers and vomitoxin in wheat, discolored soybeans, low test weight and high moisture corn. Then Mother Nature left us with excessive moisture and flooding leaving soybeans, corn, potatoes, and sugar beets in the fields. Livestock farmers dealt with high feed prices and one of the
January 1, 2020
toughest winters that we had seen in over 20 years. Going into the fall 2019, hay, straw, cornstalk bales, sugar beet pulp and tailing, and potatoes were in short supply for livestock feed. With all of this going on farmers also had to deal with low commodity prices.
Farmers are wondering where to go from here. What crops can I plant in 2020 to help my cash flow? Will my farm even cashflow? There isn’t a simple answer that will work for every farm but there are risk management tools to help farmers and one of them is knowing your cost of production. So why does this matter and how can it help? First let me explain what all goes into figuring out your
cost of production. There are two types of expenses; direct and indirect expenses. Direct expenses are directly related to the cost of producing a specific commodity such as seed, fertilizer, chemical, land rent, and crop insurance. If you change acres from corn to wheat, direct expenses will change. Indirect expenses are necessary to the farming operation but are not dependent on a specific enterprise.
You can change your crop and livestock plan, and indirect expenses will not change. Examples of indirect expenses are machinery leases, intermediate and long term interest expenses, real estate taxes, and professional fees and dues. These expenses will
Grain Marketing
Center for Farm Financial Management
University of Minnesota
http://www.cffm.umn.edu/GrainMarketing/marketingplans.asp x
Spring Wheat: 2020 Pre-Harvest Marketing Plan
by Edward Usset
Expected 2020 production: 30,000 bushels
not change if you switch acres from corn to wheat.
Every once in a while I have a farmer ask me why it is worth it to figure out the cost per acre. The farmer tells me “it is what it is and I can’t change that.” While I agree that some things
Objective: Buy crop insurance to protect my production risk, and have 75% of my APH insured wheat crop priced by mid-June.
Price 5,000 bushels at $5.50 cash price ($6.00 September futures) using forward contract/futures hedge/futures fixed contract.
Price 5,000 bushels at $6.00c/$6.50f, or by April 7, pricing tool to be determined (“tbd”).
Price 2,500 bushels at $6.50c/$7.00f, or by April 21, pricing tool tbd.
Price 5,000 bushels at $7.00c/$7.50f, or by May 7, pricing tool tbd.
Price my last 5,000 bushels at $7.50c/$8.00f, or by June 5, pricing tool tbd.
Plan starts on January 1, 2020. Earlier sales may be made at a 50-cent premium and would be limited to 15,000 bushels.
I will consider the Dec’20 futures contract for new crop sales at a 12-cent premium to Sep’20.
Ignore decision dates and make no sale if prices are lower than $5.50 local cash price/$6.00 September futures.
Jessica Hanson NCTC FBM Instructor
Cost of Production
cannot be changed, knowing your cost of production can help a farm make vital decisions. Here are my three reasons to know your cost of production.
First on the list is understanding which crops are profitable. Knowing your cost of production can help you see what crops are making the farm money or are losing money. Every farm is different and one crop maybe the main money maker for one farm but may not make money for another farm. Keeping a history on the farm’s profit and losses on a crop can help a farm eliminate the crop that is losing money.
Your cost of production can help a you decide on crop marketing. If you know your breakeven number for a crop, it is a good starting point to market a percentage of your crop. It is often recommended to market a little at a time even if it is only at your breakeven price. This gives you a starting point to begin making sales, and if possible, sell when prices rally to profitable levels too.
Lastly, knowing your cost of production can help you improve farm practices. Understanding your numbers allows you to benchmark with similar farms and identify where improvements can be made. Is your fertilizer too low or high? How about your seed costs? Often
overlooked are overhead expenses. Too much labor, or unnecessary machinery, can add up quickly.
To calculate your cost of production, you will need to spend some time on organizing and completing your paperwork. You need to know where every dollar that comes into the farming operation comes from and where every dollar goes in farm operation. Finding your cost of production starts with good record keeping and an accurate balance sheet. There are several good software programs to help keep track of your income and expense.
Once you have established a good system of keeping
your records you can then breakdown your income and expenses by crop and by acre. I have a sample spreadsheet that we use as Farm Business Management Instructors to figure cost of production. It is a simple example of a 1000 acres soybean and wheat operation. Remember there are many resources to help you get started with good record keeping and calculating your cost of production.
Take the time to invest in your farming operation. Every farm must start somewhere but the important thing is to get started! The time and effort you take will never be a waste of time and can lead to good decisions with increased profits.
Josh Tjosaas/Ron Dvergsten: FBM-Northland College
Miravis® Ace is a fungicide like no other. It’s powerful enough to control scab, even when sprayed as early as 50% head emergence. That gives you more time to get it right. Plus, improved ef cacy, reduced DON levels and a potential yield gain of 3 to 6 bu/A come harvest. To learn more, see your local Syngenta retailer or visit SprayEarlier.com.
