AG Mag North Central Illinois
A
TALE OF TWO SISTERS Buzzard Glory Farms grows local produce and flowers in two locations
PUBLICATION • SUMMER 2020
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PRSRT STD U.S. Postage PAID Permit No. 486 Princeton, IL 61356
We have had one unforeseen record setting event after another. You have endured 2019 Prevent Plant and now 2020 Coronavirus epidemic. We all are doing our part to remain healthy and still provide safe unmatched customer service & support to our client’s American farmers!
Thank You Farmers for all that you do! #bettertogether I would love to work with your family farm, I invite you to join us and experience the difference.
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I have helped my farm clients and prospect sign up for a lot of essential Government programs this spring. Is your Crop Insurance company helping to bring the most government program dollars to your farm operation? Are you leaving money on the table because you didn’t have someone working on your behalf to help understand all these FSA Programs? Crop insurance policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois. An Equal Opportunity Provider. This is not a statement of contract. For a complete description of all coverages, options, exclusions, and limitations, please refer to the policy.
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Mike Morris Princeton (815) 872-3333
Ben Schmidt Princeton (815) 872-0914
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Dan Kniss Agency Manager (815) 221-3075
Policies issued by COUNTRY Mutual Insurance Company®, COUNTRY Life Insurance Company® and COUNTRY Investors Life Assurance Company®, Boomington, IL. 1219-003 Ag Mag – 3
INDEX
Ag Mag
Beneficial Ag Center brings businesses together ������� 6 Creating a buzz ���������������������������������������������������������� 10
Bureau County Republican 526 S. Bureau Valley Pkwy., Ste. F Princeton, IL 61356 815-875-4461 Publisher Dan Goetz Associate Editor Goldie Rapp
Farm livin’ is the life for him �������������������������������������� 14
Advertising Director Jeanette Smith
When you wish upon a farm �������������������������������������� 18
Writers Sarah Ford Jeff Helfrich Kevin Hieronymus Goldie Rapp Melissa Rubalcaba Riske
Chain reaction ���������������������������������������������������������� 20 Eye on Profitability ���������������������������������������������������� 23
jmsmith@shawmedia.com
Photographers Kevin Hieronymus Michael Krabbenhoeft Alex T. Paschal Goldie Rapp Cover Photo Buzzard Glory Farms
Articles and advertisements are the property of the Bureau County Republican. No portion of the North Central Illinois Ag Mag may be reproduced without the written consent of the publisher. Ad content is not the responsibility of the Bureau County Republican. The information in this magazine is believed to be accurate; however, the Bureau County Republican cannot and does not guarantee its accuracy. The Bureau County Republican cannot and will not be held liable for the quality or performance of goods and services provided by advertisers listed in any portion of this magazine.
Designer Liz Klein Published by: est. 1851
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Ag Mag – 5
Beneficial Ag Center brings businesses together By Kevin Hieronymus The Beneficial Ag Center offers seven different agricultural-related businesses all under one roof in downtown Princeton. Ag Consulting Group bought the former insurance building located at 636 S. Main St. last year and completely renovated it to fit their needs. The Beneficial Ag Center opened its doors this March. Businesses operating out of the Beneficial Ag Center are Land Guys, Cyr Financial, Thorn Creek Insurance, AgXplore, Indigo AG and Integra Fortified Seed. Beneficial Ag Center markets itself as “Growing Profitable Relationships.” “All the businesses in the Ag Center are all people we know and trust to provide good service to our customers, as well as people in our community,” said Kevin Bauer, Ag Consulting Group’s co-founder and vice president for the Eastern U.S. region. The phone number for the Beneficial Ag Center is 815341-3090. Here’s a look at each business: • Ag Consulting Group was founded in 2012 with offices in Kearney, Neb., Holdrege, Neb. and Princeton, operating in 18 states. It is an independent grain marketing adviser on both futures
Bauer said. Contact Nathan Cumpton. • Cyr Financial specializes in retirement planning services. Contact Ian Nichols. • Thorn Creek Insurance offers innovative insurance options for grain and livestock farms, crop/hail, agri-business, commercial, special risk and personal. Contact Troy Alexander. • AgXplore, which started in 1999, has a mission to be the premiere agriculture specialty company focusing on solving problems with simple solution. Contact Peter Rousonelos.
PHOTOGRAPHY BY KEVIN HIERONYMUS
The Beneficial Ag Center in downtown Princeton offers a variety of agriculture services. Team members are John Whalen (from left to right), Kendall Kolodzieg, Nathan Cumpton, Kevin Bauer, Ian Nichols and Connor Loftus. and basis levels for corn, soybeans and wheat to help our customers maximize the value of their grain. Contact Kevin Bauer. • Land Guys has backgrounds in wildlife biology,
farming, farm management, outfitting, education, photography and land management. Land Guys offers a “high level of honesty and commitment to go with our experience, enthusiasm and passion for what we do,”
• Integra Fortified Seed is growing nationally through a combination of expertly selected genetics, innovative traits and technology, and the best agronomists to support each customer. It is committed to providing farmers the best return on their seed investment and protecting that investment with key factors to “help your crops thrive.” Contact BJ Schaben. • Indigo AG’s mission is providing healthy, traceable food to consumers. With the launch of Indigo Marketplace, it is directly connecting growers and buyers to help streamline the food chain. Contact Keri Richardson.
PRINCETON Jeff Townsend 6 – Summer 2020
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Lorraine Poelske tills up acreage on her property this spring which is where she grows her portion of Buzzard Glory Farm. SUBMITTED PHOTO
Creating a Buzz By Goldie Rapp
S
isters Lorraine Poelske and Meredith Alexander, natives of LaMoille, grew up on a family farm in LaMoille. When they weren’t active on the farm, you might have found them helping out in their grandma’s garden, which they weeded and harvested during the growing season. “We remember helping her with cucumbers and tomatoes and she always had us working and we loved it,” Poelske said. “We kind of have it in our blood.” During their college years, both sisters became involved in small, sustainable farms and fell in love with the work. It made for long days, but the work was rewarding. Following graduation, Poelske’s entrepreneurial spirit helped launched Buzzard Glory Farm near Biggsville in 2019. What started as just a hobby to grow fresh vegetables and flowers, grew into an abundant crop they quickly realized could be sold off. Last July, the sisters got their LLC and started selling at a small orchard near Monmouth. Even though the growing season was late due to the rainy spring, the sisters sold pretty much everything they grew and had a lot of fun doing it. Within the last year, Poelske and her husband, Rob, moved to Princeton after she accepted a position at the Bureau County Soil and Water Conservation District. They purchased a house in town near Jefferson Elementary School that came with
10 – Summer 2020
SUBMITTED PHOTO
Sisters Meredith Alexander (left) and Lorraine Poelske (right) are LaMoille natives that now own and operate Buzzard Glory Farm together. nearly three acres of land that was once home to a small horse farm. The Poelskes tilled up the property and planted what many might call, “an urban farm.” Lorraine planted about 50 varieties of vegetables, including carrots, beats, peas, onions, tomatoes, zucchini, peppers, broccoli and much more. While Poelske built her
farm in Princeton this past spring, Alexander stayed back in Biggsville and continued to farm the land where they started growing last year. Lorraine said many of the urban growing techniques she uses on her farm have come from the well-known farmer and author Curtis Stone, who wrote the book, “The Urban Farmer.”
Lorraine (left) and Rob Poelske pose for a photo on their urban farm in Princeton. The couple own about three acres of land near Jefferson Elementary School. PHOTOGRAPHY BY GOLDIE RAPP
Managed by two sisters in two different Illinois locations: Princeton and Biggsville Website: buzzardgloryfarm.com Email: buzzardgloryfarm@gmail.com Check them out on Facebook and Instagram!
WHERE DO THEY SELL? • Princeton Farmers Market on Saturdays from 8:30 a.m. to 1 p.m. in Soldiers and Sailors Park. • Optimal Health in Princeton on Thursdays from 4:30 to 6 p.m. • Sign-up for the Community Supported Agriculture program on their website page.
for a season. Members get a share of the crops throughout the season. Shareholders come on board on a firstcome, first-serve basis. People can sign-up on the Buzzard Glory website. Poelske and Alexander also sell at the Princeton Farmers Market on Saturdays and out front of Optimal Health in Princeton on Thursdays. Poelske said one of the aspects she loves most about Lorraine Poelske holds up an old sign she found on the property when growing is selling to her cusshe and her husband purchased the place this spring. The sign says, “Wahlstrom Paradise Acres.” The land used to be owned by Edith Wahl- tomers. “We’ve gotten repeat cusstrom who kept horses on the property for several years. The property tomers and they like to hear is located near Jefferson Elementary School. our story. It’s fun to see what PHOTOGRAPHY BY GOLDIE RAPP they like and what they buy. The techniques involve crop help cut down on the weeds, That’s always a fun part of rotation to make the most out it also keeps moisture in what we do,” she said. around the plants. of the smaller spaces. Poelske is hopeful her As for the pests, the “Once I take something growing gig will one day bePoelskes believe they have it out, I’m always planting come full-time. It’s nothing better living in town vs. out in for her to spend four to five something new,” she said. “It’s a quick rotation to make the country. hours a day out weeding, har“You don’t have the farm sure we use the space as well vesting and checking on her fields and the critters you do as we can.” crops. People can find her out out in the country. We do Both Poelske and Alexanin the early morning hours behave a lot of benefits of being fore work, and most evenings der avoid using any synthetic in town,” Lorraine said. chemicals for weed and pest after work. For her, the saying The sisters pull their harvest goes: “When you do what you control on their crops. While together and sell to members Lorraine admits it’s more love, you’ll never work a day challenging that way, she has of the Community Supported in your life.” Agriculture program, which found a good technique to makes up most of their busimanage the weeds. It simply On the cover: Lorraine Poelske shows off some ness. The way the program involves putting down straw freshly harvested greens. works is that people sign on and mowed grass around the as a “shareholder” member produce. Not only does it SUBMITTED PHOTO Ag Mag – 11
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Farm livin’ is the life for him
By Sarah Ford
T
imes may be changing for farmers in America, but there’s a timelessness and sense of history when stepping foot on the Wetzell Farm at 24777 Star Road in Tampico. Scott Wetzell has been farming here since 2005; his grandparents purchased the farm in 1972, after taking over from Wetzell’s great-grandparents, who also lived and worked at the homestead mid-century. Now Wetzell and his wife, Miranda, raise their family here – daughters Madison, 12, and Harper, 9, plus a blue heeler/border collie mix that works the cattle. The girls are involved with 4-H in the Hume Happy Hustlers Club,
and Miranda just finished up her first year of teaching at Bureau Valley, after spending 14 years in the Prophetstown School District. Wetzell was born and raised in the Tampico area, first working on the farm with his grandfather in 1996. He started college with an interest in becoming a veterinarian, but ended up earning two associate degrees from Black Hawk College – one in agribusiness and one in ag production. His farmyard is home to a silo built in 1976, machine and cattle sheds, an old red barn once home to pigs and piles of homegrown feed. Now with just under 500 acres to manage – half he
owns, half he rents – growing corn, soybeans and seed corn for Pioneer, and wheat and hay for the livestock keeps him busy seven days a week. “It’s a little bit of everything,” he says as he scopes the landscape that grows greener by the day. Besides supplements, nearly all of his cattle’s feed is grown on his farm. With the COVID-19 pandemic, life on the farm has been a little less crowded, but not necessarily any less hectic. Wetzell has about 80 head of cattle, including four cows, two with calves and two more on the way. Normally he keeps a herd of 250, with a maximum of 300, but he had to buy fewer
this year due to COVID-19. He purchased his herd in November and he normally sells in late April or early May, although with restaurants temporarily closed and buyers scarce, he’s had to push that sell date back this year. As if that’s not enough work for this farmer and rancher, Wetzell also serves as one of two district checkoff directors for the Illinois Beef Association (illinoisbeef. com). There are seven districts in Illinois, each with two elected directors, with a primary focus on promotion, education and consumer education. The IBA also has a policy division, which deals more in lobbying. So, what exactly does a
PHOTOGRAPHY BY MICHAEL KRABBENHOEFT/MKRABBENHOEFT@SAUKVALLEY.COM
When Scott Wetzell, shown here on his farm in rural Tampico, says he goes all in for ag, he means it. The Tampico man raises livestock and crops on his family farm, he’s the president of the Whiteside County Cattlemen’s Association and a member of the Farm Bureau board, and he’s checkoff director for the Illinois Beef Association. 14 – Summer 2020
checkoff director do? For each beef animal sold, $1 is collected for the National Cattlemen Feed Association; out of that, 50 cents supports the organization on a federal level, and 50 cents stays with the state. Illinois also adds another 50 cents per animal sold, so $1.50 is ultimately collected for funding for educational efforts. The program started in 1985 with the farm bill, so it’s a federally-regulated program operating under federal guidelines. Wetzell serves as chairman Division 2, he’s the president of the Whiteside County Cattlemen’s Association, and he’s also a member of the Farm Bureau board. As division chair, he’s committed to five or six meetings in Springfield a year, although the actual number has proven to be a little bit higher. He was first elected to the IBA in 2017 after gathering 51 signatures of area cattle farmers to make it onto the not-very-competitive ballot. See Wetzell page 16
About IBA Checkoff
The Illinois Beef Association’s Checkoff Division is the Qualified State Beef Council in Illinois and has a long history of providing a path for cattlemen to promote their product through their checkoff program. The Illinois Beef Checkoff began in 1983 as a voluntary 50-cent per head assessment paid by cattlemen. That state program was halted when federal legislation was passed in the 1985 Farm Bill establishing the national checkoff program. That national checkoff went into effect October 1, 1986. A national referendum was held in 1988 to continue the national $1 checkoff. That vote passed nationwide with a 79% favorable vote. Illinois cattle owners voted 83% favorable in that referendum. In February 2015, Illinois cattlemen completed a petition and referendum process to reinstate the state checkoff. The statewide vote to restart the state checkoff passed by wide margin, with 88% voting yes. Beginning in July 2015, Illinois has had two beef checkoffs totaling $1.50 per head working to increase demand
for beef. Both programs are controlled by cattlemen serving on the IBA Board of Governors Checkoff Division. The Illinois Beef Checkoff is collected on all cattle sold in Illinois and differs from the national checkoff program in two major ways: • The 50 cent state checkoff is refundable by contacting IBA • The state checkoff can address a broader area of programs Source (and for more information on the program): illinoisbeef. com/checkoff https://www. illinoisbeef.com/about-us/ board-of-governors
CHECKOFF DIRECTORS District 1 Justin Rahn, Mount Carroll Term expires 2022 Don Brown, Davis Term expires 2020
District 2 Scott Wetzell, Tampico Term expires 2023 District 3 Ken Dau, Sheridan Term expires 2022 Chip Foster, Maple Park Term expires 2023 District 4 Terry Boydstun, Abingdon Term expires 2022 Shannon Welsh, Blandinsville Term expires 2020 District 5 T.J. Curtin, Blue Mound Term expires 2022 Sara Prescott, Sherman Term expires 2020 District 6 Chase Brown, Warrensburg Term expires 2025 Steve Carruthers, Bingham Term expires 2020 District 7 Ed Billingsley, Goreville Term expires 2023 Jim Meller, Anna Term expires 2022
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Ag Mag – 15
Wetzell FROM PAGE 15
“If I’m giving my time to something, I go all in,” he said. COVID-19 has had a measurable impact on the association’s activities this year, with a hiatus in activity as the stay-at-home orders continued through the spring. Wetzell says the main focus of IBA has been radio and print in various farm publications, more so in May when it’s beef month. However, he admits this whole year has been thrown off, both with budgets and plans. The decision recently was made to cancel the summer conference and annual meeting; alternatives are in the works. In a normal year, an element of the association’s focus has been utilizing the popular tagline “Beef – It’s What’s for Dinner” which has been rolled out again in the past couple of years. The association also worked with several universities on research funding for educational projects; built
out a social media presence that’s proven to be a valuable investment; collaborated with the Junior Beef Association and their livestock programs; and sponsored Illinois Farm Families and their programs. The past two years, IBA was involved in that organization’s Chicago Gourmet Festival, which included a chili cookoff at Millennium Park. IBA also helps organize animal handling training through the Beef Quality Assurance program. Companies such as Tyson and Cargill won’t buy cattle unless the farmers are properly certified through an animal handling program; this ensures that the animals have been treated humanely, since consumers want to know where their meat comes from and how it was handled. In reflecting on the past three months and the fallout from the pandemic, Wetzell said the problem hasn’t been that there’s a meat shortage, but rather logistical issues of getting the product where it needs to be. Additionally, processing plants have been shutting down, although the
pork industry has taken a harder hit. In April, there were no cattle even coming into the market. Wetzell expects the markets to recover in 20 months to two years, when buyers can start moving cattle through again at full capacity. Another impact of COVID19 has been pricing discrepancies in the market. Producers were getting a price that was not reflected in the sale price on the Chicago Mercantile Exchange. The IBA, along with other industry leaders, signed a letter to the Department of Justice acknowledging the possibility of price gouging in the wake of COVID-19. Meat could be sold at 90 cents a pound to packers, but in the market it would sell from $4 up to $18-per-pound, especially for finer cuts. So, while beef prices have gone up, it wasn’t necessarily a boom for the farmers. “I’m hoping there’s more openness on what packers are paying. We don’t see what they pay for cattle,” he says of the current system. A bill is in the works that would
mandate transparency on those numbers. Wetzell estimates that suppliers could be seeing only 8 to 10% of what they bought. “I’m selling on what was reported on last week, but is it accurate?” He adds that 80% of beef is processed by three different companies, as smaller and more local markets have dried up over the years. He expects a brighter future for the industry, though. With the recent passage of the USMCA trade deal, he expects an increase of beef buyers from Mexico. The trade deal also should help with the grain markets, as both Mexico and Canada are large importers. “The deal is signed – as long as they don’t try to mess with it or change it, it should be a good thing.” As a volunteer with all these beef organizations, Wetzell has proven himself to be what a farmer in America was built to be – industrious, dedicated, community-oriented, engaged and doing what it takes to feed the people of the nation.
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Ag Mag – 17
Left: Wishful Acres’ brew schedule depends on the demand, but Brewmaster Nate Peterson averages about once a week for brewing. Center: Cheers! Penny and Nate Peterson are the wishful thinkers behind Wishful Acres Farm & Brewery in Lena. The family farm grows more than a hundred different varieties of organic produce and plants and is home to an artisan craft micro-brewery. “When we think back and look at where we came from, through the hard years, it’s hard to believe this is our life,” Penny said. “We’re so grateful, thankful.”
When you wish upon a farm Right: Because of the coronavirus restrictions, customers must wear a mask when ordering a beer from the inside taproom and can only drink outside. Bottom: Nate Peterson, owner and brewmaster of Wishful Acres, grows a variety of hops on the farm for his beers.
PHOTOGRAPHY BY ALEX T. PASCHAL/APASCHAL@SAUKVALLEY.COM
By Melissa Rubalcaba Riske
LENA – It all started with a simple idea: Grow some vegetables in a backyard garden and save some money. As she picked tomatoes and cucumbers from that little backyard garden, Penny Peterson said she never imagined the seeds she was planting would someday grow into a 10-acre family farm and business where more than a hundred different varieties of organic vegetables, hops, micro-greens, herbs, fruits, and garden plants are grown. But the farm is only half of the story. In 2016 she and her husband, Nate, followed another dream when Nate’s hobby of brewing up beer became the basis for opening an artisan craft micro-brewery, and so it was that a wish came true: Wishful Acres Farm & Brewery was born. “When we think back and look at where we came from, through the hard years, it’s hard to believe this is our life,” Penny said. “We’re so grateful, thankful.” 18 – Summer 2020
Located just outside Freeport, the farm and brewery is gaining attention as locals as well as day trippers stop in on the weekends to taste what Nate’s brewing, often using hops grown on the family farm. Penny said he’s always working on new beers and this summer he’s experimenting with a fruit beer using peaches and mangos. “We probably make two new beers a month,” Penny said. Wishful Acres also features an on-site tap room, bar and beer garden. The brewing started out much like the gardening idea. Back in the mid-2000s, Penny gave Nate a beer-making kit as a present and gently suggested that if he brewed his own beer, they could save a little money. It did more than just save a little money: now it’s making them some money. Their beer is handcrafted at the farm brewery in small batches and they keep about a dozen on tap each week, including their homemade root beer, and the
selection changes frequently. Pretty good for a couple who didn’t even have a farming background. Penny said she grew up in Freeport and each summer her family had a backyard garden, a tradition she carried on when she had her own home. After the arrival of her first son in 2003 she became more driven to build-up the garden and sought out fresh fruits and vegetables at local farmers markets. Soon, her trips to markets became a chance to ask farmers questions and she soaked up their lessons on growing and harvesting. She said she’s also an avid reader. “Everything I learned, I taught myself from reading many books,” Penny said. Penny expanded her garden in 2009 when she and Nate rented a half-acre plot of farmland just outside of town. It’s there that the business’ name was born – they wished that they had had their own farm so they called their growing business, Wishful Acres Farm. In 2011, she
and Nate found an opportunity they couldn’t pass up: the chance to buy a 10-acre farm. Penny admits it wasn’t a path she had imagined. She had gone to school as a business major and after graduating she worked as a web developer and in marketing. Those experiences are proving valuable, though, as she maintains the farm’s website and does its marketing, as well as tending to the daily farm and helping with the brewery. While there’s some help from their three schoolage sons, most of the work of the farm and brewery falls on Nate and Penny. The Petersons grow more than 100 organic vegetables, herbs and fruits – from A to Z, argula to zucchini – and sells a portion of their harvest to members of a Community Supported Agriculture program. The business doesn’t sell to the general public. The way the program works is that people sign on as a “shareholder” member of the farm for a season – $429
for a whole season half-share or $858 for a whole-season full share. Those people get a share of the crops – at least 3/4 bushel basket of mixed produce each week for a 22week season – that they pick up at the farm. A share is enough feed a family of two to four people for a week. Shareholders come on board on a first-come, first-serve basis, and this year’s shares are already sold out. People can get on the farm’s Wait List, but they could be waiting awhile. The farm’s current wait list is a few years long –a testament to the popularity of the Petersons’ products. Mia Rudolph of Freeport has been buying the Petersons’ vegetables and herbs through their CSA for the past six years. “I know the value of farming and I love to go to the farm and see how food is made, and have my children make that connection too,” Rudolph said. “I like to get the vegetables on Friday, so when I go to the store I can plan my meals around what we received that week in the CSA. If we get bok choy then
that week we might have steamed bok choy in a stir fry. I have to be creative.” What started as a connection through the CSA, blossomed over the years between the Rudolph and Peterson families. They have children of similar ages and interests. When the taproom opened, Rudolph said it became a great place to gather too. Her husband orders his favorite, the Unicorn Tears brew, while she alternates between a red ale and dark brew and their children request the homemade root beer on tap before they settle in to play cards and watch the farm cats roam around. “Wishful Acres is very family-orientated,” Rudolph said. The tap room is also a gallery for Rudolph’s artwork, a collection of acrylic paintings on canvas featuring animals. Visitors can see and purchase her paintings of a cow. Rudolph, who works during the day as a nurse managing patients, said she grew up on a farm and her paintings are an appreciation for the beauty of local animals and an outlet for her creativity.
Wishful Acres Farm & Brewery TAPROOM BAR AND BREWERY 4679 N. Flansburg Road, Lena Open for Outdoor Seating or Carryout: 4-8 p.m. Friday, 1-8 p.m. Saturday, 1-5 p.m. Sunday Online: www.wishfulacresfarm.com and on Facebook
Many visitors to the Petersons’ farm and tap room soon become friends, greeting them with a wave and enjoying the chance to sit back, relax and sip a freshly brewed beer.
“We’ve traveled around the U.S., we’ve visited other local breweries but I have to say we are spoiled by Nate, because we’ve gotten so used to such a good quality beer,” Rudolph said.
Peterson Bros. James Peterson Seed Representative
13344 US Hwy 6 Geneseo, IL 61243 ph. 800-369-7833 www.wyffels.com
400 South West St Wyanet, IL 61379
cell: 815-878-1269 jamespete64@gmail.com
SM-ST1788374
Ag Mag – 19
Chain Reaction
By Jeff Helfrich
A
fter a tumultuous 2019 in which the weather played havoc with crop production, local livestock producers were hoping this year’s ride to the market wouldn’t be as bumpy. It turns out a pandemic had other plans. The COVID-19 pandemic has interrupted the agricultural supply chain. The prices of livestock and grain have dropped. Slaughter plants have closed because of COVID-19 outbreaks. Ethanol plants aren’t taking grain because Ron Kern of low oil prices. With restaurants closed, meat demand has changed. “Last year was a nightmare with spring planting and unplanted acres and an unending harvest,” Ogle County Farm Bureau Manager Ron
It was the cough heard ‘round the world: A virus that started toppling dominoes that circled the globe and kept falling until they disrupted an entire industry, snapping the links of a supply chain that farmers are still struggling to repair. Kern said. “Hog guys were looking for a rebound this year, and it decimated their market. The cow market is torpedoed. Grain is bad due to ethanol.” Ogle County is among the top 10 livestock producers in the state. Farmers like Keith Poole of Polo, who raises hogs and grain, are being forced to hold on to their animals because no one is buying them. In addition, trade and tariff issues over the past few years have hurt their income, leaving them without a cushion when the pandemic hit. Before the virus, a record number of hogs were being produced industrywide, and that’s resulted in crowded hog houses. Poole knows of people who are keeping three
times as many pigs in a barn as they should. Poole’s hogs are backing up, too, but he still has options. “I can hold them longer or double stock in our other barn I could move them outside. The worst-case scenario is euthanasia, but no farmer wants to start that,” he said, “But I think it might become necessary. “There’s been a major supply chain disruption, and it’s frustrating for all the farmers in the county.” Hormel’s Rochelle Foods plant is an example of that disruption. Meat is packaged at the plant, which had to be closed April 17 because of a COVID-19 outbreak, and didn’t reopen until May 4. All of its nearly 900 employ-
PHOTOGRAPHY BY ALEX T. PASCHAL/APASCHAL@SAUKVALLEY.COM
Justin Rahn checks out his cattle in a pasture near Polo. Times are tough for farmers across the country, with prices taking a hit and fewer places to sell their products. Rahn has around 100 feedlot steers and 150 cows. “Am I going to go broke tomorrow? No,” Rahn said. “ But it’s a financial strain on farmers. I bought cows to fill the feedlot back up in February and it’s fallen since.” 20 – Summer 2020
ees were tested and quarantined at home for two weeks while the plant was vigorously cleaned. The industry also wasn’t prepared for the shift in demand that occurred when restaurants closed, Poole said. The pandemic forced people to adjust their buying habits. Bacon, which once was a top commodity, is now one of the lowest. A third of the corn Poole produces each year is sold to be turned into ethanol. Because there are plants in Rochelle, Lena and Monroe, Ogle County and the surrounding area is a major grain supplier, but those plants have either been closed or they didn’t want the corn because they couldn’t make any money in a time when fewer people were driving. Last year’s bad weather hurt Poole’s corn crop, and he already was operating at half capacity before the pandemic. To offset some of his losses, he plans to work with a $19 billion USDA effort, the Coronavirus Food Assistance Program, which is working to buy up crops and make direct payments to farmers. Although farmers finally were allowed to apply for payroll protection through the federal CARES Act, that approval came late, and there wasn’t much money left in the fund by the time they applied, Kern said. The USDA program will help, but won’t come close to offsetting losses, he said. “Nobody knows where the end of the tunnel is. You keep looking for a light. But we can’t see one right now.” As for the planting season, the weather was cooperative, and farmers were able to get the resources they needed. Producers will keep plugging away despite the pandemic, and, like past difficulties, this too shall pass, said Poole, whose family has been farming now for more than 150 years. “This industry has weathered a lot of stuff, and I’m sure we’ll weather this one,” he said. “The sooner we can get everything back up and running is when this will start to be remedied.”
cattle isn’t going to pay the bills, he said. The possibility of getting rid of them if he had to is eight to 10 weeks out. People have called him and asked whether they could buy beef directly. Other farmers have had the same sort of calls. Some pig farmers have taken people up on their offers to get rid of their livestock and avoid euthanasia. Things won’t come to that for beef farmers, Rahn said, and smaller processing plants are booked up for months anyways. Rahn is most frustrated by misconceptions about the supply chain that suggest that there’s a shortage of beef. “They say there’s a lack of meat in stores,” Rahn said. “In reality, we have lots full of animals ready to go but we can’t get them to markets. It’s a bad situation.” President Donald Trump signed an executive order in May mandating that meat processing plants stay open. That may not change much due to the nature of COVID19 outbreaks. “They shut down and clean up,” Kern said. “When they come back and reopen, if 400 of 1,200 have it, they’re not coming back. The other 800, they’re saying they might not want to go, so there’s absenPHOTOGRAPHY BY ALEX T. PASCHAL/APASCHAL@SAUKVALLEY.COM teeism. They’re only running at 50 percent capacity at best. Top: Poole is hopeful that local farmers can stem the tide for the time And you can’t grab people off being until the state allows workers to return to work. the street to do that work.” It is the hope of Rahn and Bottom: Restaurants make up a major slice of the nation’s bacon buyother farmers that the econers, and when the pandemic shuttered many of them, it left farmers omy gets back to where it stuck holding on to hogs that would have otherwise gone to market. was before the pandemic. He believes it’ll be slow. It’s also After, it fell $35. If I wouldn’t his hope that he’ll see the COVID AND CATTLE have gotten out, it would The cattle industry, too, is same faces in business in Auhave been more of a bloodsuffering. gust that he saw in January. In January, Justin Rahn was bath.” “We just want normal, Rahn has around 100 feed- open markets,” Rahn said. in Cancun. That was where lot steers and 150 cows. In he first started reading news “But this is going to make addition to selling in Februof COVID-19. some people go bankrupt.” Shortly after returning, the ary, he sells cows throughout Rahn said the situation Polo and Mount Carroll area the year. Prices have been in will make him a better manthe place where he’s taking a ager with cutting costs and farmer sold his cattle in Febloss. Circumstances have also expenses. He farms grain as ruary as he usually does. It turns out he did it at just pushed back his usual prowell, which is also down due cess to start back over. the right time. to bad weather last year and “Am I going to go broke “I had several looks at my ethanol plants being shut tomorrow? No,” Rahn said. cattle when I got back and down or at minimal capacity. “But it’s a financial strain on they gave me bad prices,” He’s being hit on both sides. farmers. I bought cows to fill Rahn said. “The next week “What makes me not sleep the feedlot back up in Febru- at night is knowing I’m losing it went up $5 and I got rid ary and it’s fallen since.” of them. It ended up being money no matter what I’ll be The current value of Rahn’s working on the next day.” a good time. It was by luck.
Ag Mag – 21
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22 – Summer 2020
Analysis identifies differences in profitability among farms By Daniel Grant
FARMWEEKNOW.COM
Farmers dealing with tighter margins, due in part to the coronavirus pandemic and ongoing trade issues, continue to look for ways to maximize efficiency. USDA projects net cash farm income could decrease $10.9 billion (9%) this year to $109.6 billion relative to the 2019 forecast. Meanwhile, total production expenses could climb $10.4 billion (3%) to $354.7 billion in 2020, according to the Ag Department. So, what areas should farmers focus on to try to improve the economic outlook for their operations?
An analysis conducted by the University of Illinois farmdocDaily team recently identified differences between high-and -low-profit farms using Illinois Farm Business Farm Management (FBFM) records that break down returns by dollars to make the most sense. “A lot of behaviors, once a producer gets into doing things a certain way, can sometimes be awfully hard to change,” said Dale Lattz, University of Illinois farmdoc research associate. “If you haven’t looked closer at alternatives and you’re just doing the same thing, it’s always good to re-evaluate, especially when margins are tight.” One key trait of high-profit farms involves more steady output. High-profit farms averaged between seven to 20 additional bushels-per-acre for corn and four to seven more bushels of soybeans than low-
profit farms from 2015-19. The larger yields helped boost gross farm returns by $80 to $132-per-acre for highprofit farms compared to their counterparts during that fiveyear stretch. On the flipside, high-profit farms had lower production expenses which improved overall efficiency. Crop costs averaged $24 to $39 less-peracre on high-profit farms from 2015-19, while power and equipment costs averaged $36 to $40 less-per-acre compared to low-profit farms. A key to reducing costs appeared to be size of each operation. Higher profit farms averaged 400 to 700 acres of additional ground in central and northern Illinois while higher profit farms in southern Illinois averaged just 47 more acres. “The larger farms are able to spread their labor and ma-
chinery costs over more acres, contributing to lower costs per acre and higher profitability,” authors of the study noted. But many other factors contribute to different profit levels on each farm. Therefore, farmers should analyze factors they can control on their own operations in the ongoing pursuit of improved efficiency. “There isn’t one single thing (that guarantees better returns). It’s not like somebody is just doing an excellent job marketing or with production,” Lattz said. “It’s a combination of good management, production practices and cost control.” The analysis also showed higher profits in northern and southern Illinois in 2019 for those with more corn and soybean acres. Lattz believes that reflects the record amount of prevented plant acres last season.
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Ag Mag – 23
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