February 21, 2020
www.agrinews-pubs.com
Farm profit steady USDA foresees income increase By Tom C. Doran
AGRINEWS PUBLICATIONS
WASHINGTON — Farm sector profits are forecast to be near average in 2020. The U.S. Department of Agriculture Economic Research Service projects net farm income for this year to increase by $3.1 billion, or 3.3%, to $96.7 billion nationwide. In inflation-adjusted terms, net farm income in 2020 would be 30.5% below its peak of $139.1 billion in 2013, but 5.4% above its 2000-2018 average at $91.7 billion. Net cash farm income is forecast to decrease by $10.9 billion, or 9%, to $109.6 billion. Inflation-adjusted net cash farm income, if realized, would be 0.6% below its 2000-2018 average at $110.2 billion. Net cash farm income encompasses cash receipts from farming, as well as farm-related income, including government payments, minus cash expenses. It does not include non-cash items — changes in inventories, economic depreciation and gross imputed rental income of operator dwellings and so forth — reflected in the net farm income measure above. The divergence between the two measures in the 2020 forecasts is largely caused by how net sales from inventories are treated. Net cash farm income records income in the year the sale occurred, while net farm income counts it in the year the production occurred. High net sales, at $14.7 billion, from crop inventories forecast in 2019 are expected to boost net cash farm income significantly that year. Very low net sales from inventories, at $0.5 billion, in 2020 are expected to contribute to a decrease in net cash farm income between the two years. See PROFIT, Page A2
SEE SECTION B
INSIDE
Preparing for National FFA Week A8 Warning: Coyotes could be watching you C7 New IPPA president sees opportunities D4 AgriTrucker D1
Classifieds C4
Alan Guebert D6
Farms For Sale C1
Antiques C7
From The Pastures D5
Auction Calendar B1
Lifestyle C6
Business D7
Livestock D3
Calendar C5
Opinion D6
Vol. 42 No. 52
CONTACT AGRINEWS: 800-426-9438
‘Solid Foundation’ winner in Fields-of-Corn Photo Contest The photo “Solid Foundation” by Harlen Persinger was the Grand Prize Winner in the National Corn Growers Association Fields-ofCorn Photo Contest. See all the top pictures from the contest on Page A3.
Growing ag sales Selling products to farmers more than just a job By James Henry
AGRINEWS PUBLICATIONS
NOBLESVILLE, Ind. — Agricultural sales professionals shared their tricks of the trade at the Young Farmers and Ag Professionals Conference in Noblesville. The panel that answered questions consisted of Jeff Demerly, owner of Demerly Ag Plus; Eric Farrand, vice president of global sales for United Animal Health; Marv Ulmet, salesman at BaneWelker Equipment; and Shari Westerfeld, vice president for the U.S. pork business at Zoetis. How do you communicate with farmers? Westerfeld: “Agriculture, in general, is becoming more consolidated, decision-makers and those who surround Westerfeld those decision-makers. So, how I look at it is the networking side, understanding who has maybe relationships with those agricultural professionals to where we can start to understand how we can build that relationship, as well. “Understanding about the business, so if we do cold calls, that we don’t go in say, ‘Tell me about your business.’ So, that we go in more with a better understanding of, ‘Hey, I’ve seen this or that about your business.’ Maybe there
Lynn Barker retired recently as publisher of Illinois AgriNews and Indiana AgriNews.
Reflecting on 42 years at AgriNews Barker retires as newspaper chief By Martha Blum
AGRINEWS PUBLICATIONS
n Hemp for fiber and other industrial uses such as paper, clothing, insulation and plastics. n Hemp for seeds such as seed for production agriculture, food, nutritional and cosmetic products. n Hemp for cannabidiol, or CBD oil.
LA SALLE, Ill. — The words upstart, advertising and agriculture intrigued Lynn Barker to apply for a job at AgriNews that resulted in a nearly 42-year career with the company. Barker recently retired as publisher of Illinois AgriNews and Indiana AgriNews, a position he held for 24 years. The Illinois State University graduate started as an advertising representative and held the position of national advertising manager prior to becoming the newpapers’ publisher. As a student at ISU, the native of Beardstown didn’t plan to spend his entire career involved in the agricultural industry. Barker originally studied political science in college with the goal to pursue a career as a lawyer. “My parents were educators, my dad was the principal at the grade school and my mom was a grade school teacher,” Barker said. “But probably half of my class was related to farming.” Barker’s closest connection to farming was the summer he spent working on a Christmas tree farm. “My job was trimming Christmas trees with a machete,” he said. “We wore shin and toe guards for protection.” By his junior year at ISU, he switched his focus and graduated with a double major in political science and mass communications.
See HEMP, Page A4
See BARKER, Page A2
AGRINEWS PHOTO/JAMES HENRY
Framed by the new Goodyear Optitorque tire, farmers and agricultural sales professionals discuss the variety of products in the Titan International Inc. exhibit at the National Farm Machinery Show in Louisville, Kentucky. are unique things about that person’s business that you want to bring up in those initial discussions to try to find that common ground. “In agriculture, probably more than any other profession really out there, a lot of business is still based on we
want to do business with people. So, if we like the people we are doing business with, than we uniquely try to find those things where we have common ground together to make those decisions.” See SALES, Page A4
Digging into hemp agronomics By Tom C. Doran
AGRINEWS PUBLICATIONS
KANKAKEE, Ill. — The agronomics of a “new” Illinois crop were detailed in a recent SoilBiotics seminar. About 22,000 acres of industrial hemp were issued permits in 2019, the first year the multiuse crop was available for licensing in the Prairie State
after the General Assembly’s approval last spring. Todd Zehr, SoilBiotics founder and owner, has worked both nationally and internationally with industrial hemp growers and gave insight into the crop that has been cultivated for centuries, including in the Midwest until the 1950s. The commonly grown commercial hemp crop segments are: