THE LAND ~ Dec. 23, 2016 ~ Northern Edition

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“Since 1976, Where Farm and Family Meet” © 2016

December 23, 2016

Northern EDITION

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Happy Holidays from The Land

Writing decades for The Land

THE LAND, DECEMBER 23, 2016

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P.O. Box 3169 418 South Second St. Mankato, MN 56002 (800) 657-4665 Vol. XXXV ❖ No. 26 32 pages, 1 section plus supplements

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COLUMNS Opinion Farm and Food File Table Talk Calendar of Events The Book Worm Farm Programs Marketing Mielke Market Weekly Auctions/Classifieds Advertiser Listing Back Roads

2-6 6 7 6 8 14 14-21 20 24-31 31 32

“Where Farm and Family Meet”

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STAFF

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and challenges of the Christmas tree

By TIM KING business and we left there feeling like The Land Correspondent we had made some new friends and It was early winter and I was pullwere more informed about a segment ing wet and snowy Christmas trees of Minnesota agriculture. out of the woods for Plants Beautiful, a tree nursery and Christmas tree In journalism, we call the people we farm near Parkers Prairie, Minn. interview “sources.” It’s a cold That was back in the mid-1980s. term that is somewhat dehumanOn that particular soggy day, the izing. It sounds like we journalowner, Lowell Dittberner, was ists use people. But Chuck and being interviewed by Dee George, Kathy Parker were more than a correspondent for The Land. our sources that day. They were After Dee wrapped up her interour partners in a project to view and took a photo of Lowell, explain Christmas tree growing she and I chatted a bit. I told her and marketing to readers of The I’d been writing some articles for Land. We have been incredibly the Browerville, Minn., newspafortunate to work with hundreds per. of partners who have helped Photo by Jan King explain agriculture to readers “I’ll bet you could write for The over the years.

Land,” she said and scribbled the Chuck and Kathy Parker of Cornerphone number on a paper scrap. stone Pines, their Christmas tree farm It was just a year ago that we That number has been in my pre- near Grey Eagle, Minn., was a “Back interviewed and photographed Roads” feature on Dec. 18, 2009. Cordigital-age paper Rolodex ever Steve Gilbertson. Steve, who goes nerstone Pines is still going strong. since.

by Gilby, has a 200-acre beef ranch and apple orchard on A few days after talking to Dee, Moran Brook south of Staples, Minn. When we visI did call that number and introduced myself to the editor. I don’t recall her name but she referred me to ited Gilby he took great care in explaining both his Mindy Desens. In those days, The Land had regional beef operation and his apple business. editors and Mindy was the editor for my area. The “We don’t have any grain on the farm,” Gilby told first story idea I pitched to Mindy was about a meet- us. “The cattle get what we have — apples and hay.” ing in St. Cloud for commercial strawberry growers.

Gilby went on to tell us he sells a lot of apples from Mindy encouraged me to attend the meeting, write his 2,000 tree orchard wholesale. But the apples that the story, take some photos and send it in. aren’t sold are fed to his cattle. To demonstrate, he That first article, and many others after it, was picked some ripe red apples, chopped them up, put typed on a manual typewriter and mailed to The them in a feed bunk, and stepped aside. The dozen Land. Since we used film in those days, we would 800-pound steers that lifted their heads from the also mail actual photos with the story. grass and then thundered toward the feeder made an “I used color slide film for The Land,” Jan, my wife impressive sight and sound. and photographic partner on over a thousand artiHe also showed us the machine that he invented cles, said. “I shot the photos and took them to the for chopping apples and then he showed us how he Ben Franklin dime store and hoped they would turn dried the apples for storage. It was a fun interview out. Sometimes the photo lab would do the processand we learned a lot. ing wrong. It was nerve wracking.”

Steve Gilbertson was a good partner but his innoTwenty years after I visited with Dee George at vative enterprise created a journalistic dilemma.

Plants Beautiful, Jan and I did our own Christmas “You always have to ask yourself what is this story tree story. We did the interview and digital photography on one of those rare late autumn days with blue about,” former The Land editor Randy Frahm insisted years ago. “If the reader can’t learn what the sky, sunshine, and no snow on the ground. Chuck story is about in the first paragraph they may not and Kathy Parker, of Cornerstone Pines between Grey Eagle and Long Prairie, Minn., were a pleasure read any further.” to visit with as we strolled through their plantings Randy called that paragraph the “nut graph.” It is and they explained their business to us. the seed for everything that follows.

The Parkers gave us an understanding of the joys See KING, pg. 4

Inside this issue

8 — AgStar 2017 Outlook meeting shows farmers how to mitigate risk 11 — Minn. couple knits and sells mittens from old wool sweaters to support mission in Lima, Peru

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THE LAND, DECEMBER 23, 2016

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Letter: Tax reform necessary to boost infrastructure To the Editor: casters say could boost economic In responding to the Nov. 14 front growth, bring higher interest rates and page story in the Wall Street Journal inflation, and a new set of potential that reads, “The presidency of Donald Trump is poised risks including international trade wars,” Alan Gueto usher in a new era for the U.S. economy that fore- bert asks (in the Nov. 25 issue of The Land), how will

OPINION

the U.S. Congressional Republicans respond to the additional spending that President-elect Donald Trump proposed to increase infrastructure?

I definitely think we have to raise the fuel and gas tax for road and bridge building. But that will be not enough. We also have to reform the income tax structure.

Inequality of income is a major problem all over the world. We will not alleviate this problem by raising the tax rate on the rich. What we need is a tax system that taxes all income with a single rate so that one makes economic decisions independent of tax consequences when business decisions are made.

Manufacturing has to adopt the value-added system of taxing so previous taxes in the production process can be credited. Corporate tax rate then can be reduced since taxes are already being paid in the production process. But with this reduction it will become even harder for employers to fund health care and Social Security for their employees because the taxes saved would not be that great. That is why all income needs to be taxed for Social Security and Medicare, but then only half of the present rate. Any wages paid subject to taxes can thus be deducted from the employer’s income subject to taxes even for domestic help.

We will also have to broaden the sales tax to all goods. As mentioned above, we have to increase the road tax and maybe increase the tax on fossil fuel.

This will encourage us to make better use of fossil fuels. With these taxes we can then give each individual an adequate personal tax credit to help them pay for their own health care and retirement while enabling business to better compete on a global market where business is not heavily taxed. Furthermore, employers can then better afford to hire less productive workers.

One final note: Deficit spending is not necessarily bad, provided we have in law a mechanism where all taxes are raised in proportion to the rise of inflation so all will share equally.

LeRoy Schlangen Richmond, Minn.

“Where Farm and Family Meet”

Honorable work

KING, from pg. 2 So was Gilby’s story an orchard story? Or was it a beef story? Happily I wasn’t skewered on the dilemmas’ horns for long. Tom Royer, one of Randy’s successors, wisely recognized that Gilby’s story was actually two stories in one.

“Let’s do the orchard as a “Back Roads” feature and the apple fed beef for our beef issue,” Royer suggested.

So you’ve got editors, writers, readers, and sources — sorry ... partners, which make up a team to communicate agriculture’s ever-evolving story. I might add that advertisers are also essential team members. It’s been, and continues to be, an honor and pleasure to be a part of that team at The Land these last three decades. ❖

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THE LAND, DECEMBER 23, 2016

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THE LAND, DECEMBER 23, 2016

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Howard’s priceless gift of simple giving But I lied and said, “Sure does.”

Editor’s note: This is the only week of the year Alan Guebert does not write a Howard beckoned me to sit. We had new column. This column, written in shared this Christmas Day in the dairy 1994, is easily the most requested colbarn and it was his request that we share umn Guebert has ever written. a bit of the night, also. He knew I was The Christmas tree was a scrub cedar alone because my family (his employer) hacked from the edge of the woods was visiting relatives. I knew he was alone which bordered the farm. Big-bulbed because he was always alone — a bachelor lights, strung in barber pole fashion, for nearly 40 years. generated almost as much heat as the FARM & FOOD FILE “I’ll get us some Christmas cheer,” he nearby wood stove. Yellowed Christmas offered as I sank into the sofa. In untied cards, saved over the years and perched

By Alan Guebert work shoes, he shuffled toward the like doves in the untrimmed branches, kitchen. A minute later, he returned with served as ornaments. two water glasses filled with rhubarb “I believe this is the prettiest tree wine. We raised them to the day.

I’ve ever had,” Howard proclaimed as “It’s been a good Christmas, ain’t it we stood in its glow. “And its smells good, too.”

Allie-Boy,” he asked as he sat in a ladderback chair The only scent evident to me was a mixture of by the stove. wood smoke and the remains of a fried pork supper. He had called me Allie Boy for as long as I could

OPINION

“Where Farm and Family Meet”

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Calendar of Events Visit www.TheLandOnline.com to view our complete calendar & enter your own events, or send an e-mail with your event’s details to editor@thelandonline.com Jan. 12-13 – 2017 Minnesota Organic Conference – Saint Cloud, Minn. – Farmer-oriented education and trade show sponsored by the Minnesota Department of Agriculture – Contact Cassie Dahl at (651) 201-6012 or visit www.mda.state.mn.us Jan. 17-18 – Minnesota Pork Congress – Minneapolis – Swine specific trade show and education event – Visit www. mnporkcongress.com or contact Minnesota Pork at (507) 3458814 or mnpork@mnpork.com Jan 25-26 – MN Ag EXPO – Mankato, Minn. – Minnesota Corn and Soybean growers host trade show, seminars, events and annual meetings – Visit www.mnagexpo.com Jan. 19 – AgStar Technoledge Conference – Mankato, Minn. – Conference offers information on the latest equipment in tractor,

field or barn and how to select the right tools for your business – Visit AgStar.com/Technoledge Jan. 19-20 – Upper Midwest Regional Fruit and Vegetable Growers Conference and Trade Show – Saint Cloud, Minn. – Growers can explore new ideas, network with other growers, talk with exhibitors and attend seminars – Visit Minnesota Fruit and Vegetable Growers Association at www.mfvga.org or call (763) 434-0400 or contact mfvga@msn.com Feb. 3-4 – Minnesota Farm Bureau Leadership Conference – Bemidji, Minn. – Conference to raise awareness of ag issues, provide advocacy tools and enhance networks and leadership skills – Contact Ruth Meirick at (651) 768-2115 or ruth.meirick@fbmn. org or visit www.fbmn.org/leadership-conference Feb. 11 – Sustainable Farming Association Conference – Saint Joseph, Minn. – Celebrate work being done by farmers to improve soil health, conserve water and enhance sustainability – Contact SFA at (844) 922-5573 or visit www.sfa-mn.org/conference/ or e-mail info@ sfa-mn.org

remember. I had taken to call him Hoard the Dairyman, after the title of a farm magazine my father subscribed to.

I nodded. It had been a good day. Two wobbly newborn calves greeted us when we arrived at the dairy barn 16 hours earlier. Wet and shivering, we dried them with the past summer’s straw before showing them how to find breakfast at their mamas’ side.

One was a bull, the other a heifer.

“We ought to name ’em Mary and Joseph,” Howard now said as we rehashed the day, “on account of them being born today.”

Mary and Joseph? Generally, Howard had only one name for all cows: Succum. None of us knew what it meant or where it came from; but from the time he arrived on the farm in 1965, every cow was always Succum and every heifer was always Little Succum. A group of cows or calves were simply Big Succums or Baby Succums.

“Mary and Joseph they will be,” I said approvingly.

Silence hung in the stale air. I reckoned that if you had bached it for 40 years, silence wasn’t a void that always needed to be filled. So I worked on my wine and said nothing. Howard reached for his pipe and the big red can of Velvet that had been my Christmas gift to him that morning.

“You want to roll yourself a smoke, Allie? I got some papers here.”

I shook off the offer.

“Yep,” Howard said as if to himself, “that’s the prettiest tree I’ve ever had. And this is shaping up to be the nicest Christmas I’ve ever had because you came by.”

I looked at the tree and then at the old man ringed in tobacco smoke staring at it and I felt sad. Not for him. I felt sad for me. I had agreed to come to his house to accommodate him, a favor for a hired man.

But he had not wanted a favor. All he had wanted was the chance to share his Christmas good fortune with me. He had some new wine, a warm fire, his best Christmas tree ever and week’s worth of tobacco. He was happy and he wanted to give me some of that happiness.

As I stared at the silhouette of Hoard the Dairyman in the glow of the Christmas lights, I saw a man of great warmth, vast wealth and pure honesty. He didn’t have a checking account or credit card, but he was far richer than the condescending college boy on his sofa.

“Well Hoard,” I said a very quiet minute later, “I better go. We both have got to be at the barn early tomorrow.”

He led me to the back door. “Don’t forget,” he said as I headed for the truck, “we’ll call those calves Mary and Joseph.”

Almost 30 Christmas nights later, I have not forgotten two calves named Mary and Joseph and Howard’s priceless gift of simple giving.

The Farm and Food File is published weekly through the United States and Canada. Past columns, events and contact information are posted at www.farmandfoodfile.com. v

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Best gifts of Christmas are memories, simple traditions are the memories, and I would have to agree. Money helps at Christmas time, but the heart is what gives the holiday its true meaning.

My parents did a great job of stretching their budget to include Christmas. But what they really gave us all year was a family large enough to have two teams for baseball, siblings to be our life-long friends, and discipline, common sense and a work ethic for the next generation.

Some of the best Christmas memories I have with our children involve picking out a tree. The experience

Correction

planting and harvesting) of those plots. Crystal Valley applies some of the crop protection agents and fertilizer.

Rollins stated, “Farmamerica works in partnership with Crystal Valley, DuPont Pioneer, Bird’s Eye, South Central College and the University of Minnesota on the site’s 240 acres of crop land. A majority of the custom work, including planting, is done by Jeff Huelsnitz of Waseca.” ❖

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In the article on Farmamerica and Director Jessica Rollins which appeared in the Dec. 9 issue of The Land, it was reported “Crystal Valley Cooperative takes care of most of the planting.” This is not entirely accurate.

Farmamerica utilizes a mixture of partnerships with companies which have research plots on the property.

Crystal Valley being one of them.

However, Jeff Huelsnitz performs most of the custom field work (tillage,

changed so much as the children grew. One photo I have shows my husband and our (then) elementaryaged daughter carrying the tree we had just cut. It shows them at opposite ends of the tree, facing opposite directions, appearing to be walking.

Poor Christmas tree.

It should have been a sign of what was to come raising this group of kiddies.

Karen Schwaller brings “Table Talk” to The Land from her home near Milford, Iowa. She can be reached at kschwaller@evertek.net. ❖

THE LAND, DECEMBER 23, 2016

that held some fruit, a pack I was reading a book that of gum or a small candy my mom gave me last sumbar, and a candy cane. The mer — a collection of Christbag had a number on it. If mas memories from people the people on the hayrack all over the nation. Many of drew the number that was the stories were set around on your bag, you won the the Depression era, when prize. It was almost too nobody had much to give. exciting to imagine.

And just last week, when I climbed onto the elliptical to Our eyes gazed upon TABLE TALK try to begin making less of those toys with wonderBy Karen Schwaller ment. There were basketmyself after a harvest season sitting in the grain cart balls, footballs, trucks, toy tractor, I popped in a movie dishes, dolls and doll accesthat I hadn’t watched in ages. It was sories, model cars and airplanes, jewabout a family in the Blue Ridge elry boxes, matchbox cars, games and Mountains in 1933, who also didn’t things like that. The big prize, given have much to offer each other for away at the end of the drawing, was a brand new bike or sled. It was always Christmas except their love. cold outside; but when a kid could get Between the book and that movie, it a chance to win prizes like those, it got me thinking about the way Christwas well worth the shivering. mas has changed over the years — even for my generation growing up in We gathered for that drawing every the 1960s and ’70s. Our children have Christmas, and — out of a family not experienced Christmas the way I with seven children — I don’t rememdid while growing up, and I didn’t ber any of us ever bringing toys home experience Christmas the way my parwith us. But then, there was pretty ents did. They were born directly after stiff competition. Everyone had large the Great Depression struck. families back then.

I remember Dad saying he got sticks Still, it was fun to have that bag of for Christmas one year. A budget issue, fruit and candy, and I don’t think any or his behavior choices as a child that of us were emotionally scarred from year? You decide. not winning any of the toys. There was always next year.

As I reflect on my childhood Christmas memories, I think about the big Looking back now, after I’ve had drawing we had in our hometown children of my own and helped proevery year during the weekend before vide for Christmases during our own Christmas. Kids from all over town tough times in agriculture, I have and country gathered around a wondered how my parents did it. We hayrack sprinkled with toys at the all received three things each year — town’s main intersection. something we needed, something we wanted, and a surprise. And it was In rural America, Santa arrives on a plenty. Christmas was so much simhayrack. pler than it seems now.

All kids received a small paper bag They say the best gifts of Christmas

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Buffer comments taken The Minnesota Board of Water and Soil Resources is seeking public comment on key components of its buffer program.

BWSR is looking for feedback on the following policies and model rules: Initial election of jurisdiction policy; enforcement procedures and administrative penalty order plan; a model county ordinance as an option for counties electing to exercise jurisdiction; and model watershed district rule as an option for districts electing to exercise jurisdiction.

Comments may be submitted via email to buffers.bwsr@state.mn.us or via U.S. mail to David Weirens, assistant director for programs and policy, BWSR, 520 Lafayette Road, St. Paul, MN 55155.

This article was submitted by the Minnesota Soybean Growers Association. v

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A request for comment and supporting documents are available on the BWSR Buffer Program website.

Anticipated action on these policies is expected at the January 2017 BWSR board meeting. Information and comments on the policies and model rules will be accepted until 4:30 p.m. on Jan. 9.

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THE LAND, DECEMBER 23, 2016

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Fun history you might not have learned in school Was your old high school not-so-involved) was exe“When Churchill Slaughtered history teacher wrong? cuted for it, including the Sheep and Stalin Robbed a Bank” Count’s daughter. The You can’t imagine so. She “winner”? Pope Clement

by Giles Milton taught you all about World VIII, who took the famiWars I and II, America’s c.2016, Picador ly’s assets because, as he past, and British history. pointed out, there were $15.00 But could you have missed no heirs left. something? What don’t you 272 pages know? Was your high school Here, you’ll read about THE BOOKWORM history teacher wrong? Or, a Bermuda Triangle SEZ as in “When Churchill mystery and a mounSlaughtered Sheep and Sta- By Terri Schlichenmeyer tain-climbing tragedy. lin Robbed a Bank” by Giles Learn about a feral And then there’s the Milton, was history merely child, who probably Chevalier d’Eon, who was hidden? wasn’t so wild. There’s a very much involved in wolf-beast here, a woman Say you’re looking in your cupboard espionage and politics for who tricked a sultan, one for a plate, when you stumble across a several countries in the man who broke into Auschina cup you’ve never seen before. late 1700s. As much as the Chevalier chwitz, and two who broke Something similar happened to Giles changed jobs, gender was also scandal- out. Read about Thomas Jefferson’s Milton while he was researching one ously changed until few knew the slave-caretaker; Nazi Germany’s Lebthing and found something else. Histruth. The Chevalier finally had herensborn; and an experiment that’s tory, he learned, is full of those little self legally declared female by French shocking, almost a century after a “historical nuggets.” courts; it was only when she died that Russian scientist tried it.

Take, for instance, when Winston the truth was finally revealed.

Cocktail chatter is not your thing, Churchill explored the possibility of Murder with a twist also shows up in and small talk, ugh. You don’t need a using biological weapons against the this book. Italian Count Francesco gigantic book to keep you occupied, Nazis. He couldn’t, of course, experiCenci fell to his death from a rickety either. But yet, you want to be enterment on humans, so he tried his meth- balcony in September, 1598. But his tained. That’s when to find “When ods on sheep. What happened affected “accident” was no accident. InvestigaChurchill Slaughtered Sheep and Staan island off the coast of Scotland for tors learned that the count was killed lin Robbed a Bank.” the next 45 years. before he fell, and everyone involved (or Fans of oddities and lovers of history alike will devour the factlets that author Giles Milton offers in this second volume of “nuggets.” There’s something for everyone in this book from ancient secrets to modern intrigue; African American history to art; rumor, cryptozoology, and more. Best of all, each chapter is short and comASK US ABOUT YEAR END pletely readable when you’ve only got SPENDING SPEC IALS! a few minutes to spare.

Here’s a book you can give to Grandpa, and borrow back. It’s great for a teen who loves quick, informative reads. And if you think you might like “When Churchill Slaughtered Sheep and Stalin Robbed a Bank,” too, well, you won’t be wrong.

Good books for holiday gifts 2007 KENWORTH T600 2004 INTERNATIONAL 9200i Jake, cruise, PM, air dump, load gauge, air DOT, 2 beds, PS, tilt/telescope, cruise control, I’m guessing there’s a mystery fan ride seats. heated mirrors. on your list. Imagine his face when he #6256 - $28,500 #9079 - $24,500 unwraps “Seduced: A Hannah Smith Novel” by Randy Wayne White. In this novel, fishing guide and part-time private investigator Hannah Smith goes in search of heirloom orange tree seeds — or maybe even rootstock — to save an industry. But what she wants… so do others, whose intentions aren’t as pure.

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ing the Civil War. When a down-andout former captain of the military is hired to deliver an orphan girl to her distant relatives, he partakes an adventure — not just through rough terrain, but through rocky childcaring, too. Wrap it up with “The German Girl” by Armando Lucas Correa — a multigenerational novel about home, based on a true story.

For the true crime buff, “Trials of the Century” by Mark J. Phillips and Aryn Z. Phillips is a great go-to gift. What made Sam Sheppard’s case, the Lindbergh baby, and Charles Manson leap onto the headlines? This book looks at those famous cases, and more. Wrap it up with “I Will Find You” by Joanna Connors, a story of a reporter who finally reveals a crime she had to hide, and the man who committed it.

The science fan on your gift list will love “Death on Earth” by Jules Howard.

It’s a straightforward book on life, life expectancy, and the deaths of creatures of all kinds, including parasites and more. Add to it “The Point Is” by Lee Eisenberg, a book on who we are, why we’re here, and how we can make the most of life until we die.

Could your giftee go live in the wilderness? Pete Fromm did, and in “The Names of the Stars,” he writes about his wilderness jobs (yes, plural) and how they transformed him over twoand-a-half decades. You can’t go wrong, then, when you pair it with “Gold Rush in the Klondike” by Josephine Knowles.

The true story of a woman in Alaska and the search for riches at the very end of the 19th century.

Undoubtedly, there’s a political animal on your gift list who didn’t get enough politics this year. Fear not!

“Man of the World: The Further Endeavors of Bill Clinton” by Joe Conason will let you check off another name.

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The Bookworm is Terri Schlichenmeyer. She lives in Wisconsin with three dogs and 10,000 books. ❖

9

Play ‘small ball’ to lower risk in grain marketing 2017 Outlook Marketing plans should be based on working capital and land equity so that you know how much risk you can afford. In addition, marketing decisions should be made in context of your crop insurance and vice versa. The cheapest price protection is crop insurance, particularly revenue assurance, noted Roberts.

Looking at charts, Roberts said the lower bound

prices of corn at roughly $3 and soybeans at $8.50 are too close to variable costs of farming. This is the time not to market, advised Roberts.

Barring a weather event, Roberts expects corn to stay in the mid-3s in 2017. He explained that the availability of wheat is the No. 1 driver of corn See OUTLOOK, pg. 10

THE LAND, DECEMBER 23, 2016 << www.TheLandOnline.com >> “Where Farm and Family Meet”

By MARIE WOOD The Land Associate Editor MANKATO, Minn. — In the next two to four years, there will be a lot of opportunity to sell the farm against your will because for the next three to five years, it’s going to be very tough to be a farmer.

Matt Roberts That’s what national speaker and grain expert Matt Roberts said to roughly 250 attendants at the AgStar 2017 Outlook meeting in Mankato, on Nov. 28. Roberts is an associate professor and grain marketing specialist at The Ohio State University.

“The goal of a grain marketer is to be a farmer next year,” said Roberts.

Farmers were expecting a broad, global perspective on the commodity markets, as well as good topical information and Roberts and AgStar delivered.

Following the greatest bull market in commodities, agriculture is experiencing an acreage overhang in the market, explained Roberts. He said the following things need to happen: supply must decline which means acreage must go back into the Conservation Reserve Program; demand must increase and costs must decline.

So who will survive? Roberts’s answer: Farmers who reduce costs and follow marketing plans to maximize profits and lower risk. He talked directly to young producers telling them that when you have a weak balance sheet, you must take less risk. Long term, Roberts noted that the return per acre is $50 to $75.

“You gotta play small ball — singles and doubles — because you can’t afford to strike out,” said Roberts.

In June, corn went to $4.40, but Roberts knows many farmers who didn’t market at that price even though $4.40 corn is profitable. They wanted to knock it out of the park.

Many young producers were in attendance; sons, nephews and a daughter or two joined their dads and uncles at the meeting. Peter Widmer, who farms corn and beans and raises hogs with his dad near New Prague, works part-time off farm. He got the message loud and clear.

“Watch your costs. Try to sell for profit, not hope for a home run,” said Widmer.

For Widmer, the silver lining is that his family farm is doing all right today, which lends optimism for the future. For instance, farmers who survived the 1980s Farm Crisis were able to buy land and expand.

“Legacies are made in the troughs not the peaks,” Roberts said.

Roberts advises calculating your burn rates by looking at the amount of working capital you have versus the amount you expect to lose and calculate how many years you can do that before you run out of cash. Because the next step is reducing value and restructuring equity.

9

10

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THE LAND, DECEMBER 23, 2016

10

Soybean price outlook better than corn, wheat for 2017 OUTLOOK from pg. 9 exports and by May 31, the U.S. Department of Agriculture predicts the United States will have a half year of wheat consumption in storage.

“We are drowning in wheat,” said Roberts. He has no good answer for wheat in 2017 except don’t grow soft red wheat.

As for corn, we are growing our yields at 1.5 bushels per acre when we only need to grow our yields by a half bushel per acre to meet ethanol demand. Corn has not had the explosive growth in exports and long-term global demand that soybeans have, but we do fill in the gaps.

“We are like a giant storage bin,” said Roberts.

He added that it’s estimated that China has about 500 million bushels of corn and 4.5 billion of No. 5 mixed grains in storage. While it’s low quality and politically complicated, it cre-

ates fear because it’s out there, Roberts explained.

In 2016, the USDA projects a 175plus bu./acre yield. In Minnesota, the expected yield is 190 bu./acre. While yields are growing faster than U.S. consumption, the inventory situation is improving. Ultimately we need a new demand source or declining acreage, said Roberts.

“Yields are growing faster than consumption. That’s the biggest issue,” he said.

Informa is projecting a 4 million drop in corn acres for 2017.

To make money storing corn, Roberts said that you must understand basis and carries. “If you’ve got storage, it pays,” he said.

Currently, carries remain wide driven by strong storage demand. He recommends this equation: Compare the three-year average basis in July vs. the current cash price to see if it’s worth it

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As always, Roberts said he is worried about the South American bean harvest and getting killed on spreads when marketing the old crop. “Don’t store past March 1,” advised Roberts.

In 2017, Roberts estimates that soybeans will gain 3 million acres.

Photo by Marie Wood

Angela Guentzel and Andy Cramblit

Lowering costs When it comes to minimizing costs, Roberts said, “Don’t be fooled by averages. Good decisions are made at the margins.”

He tells farmers to ask the question: “Should I be walking away from this ground?” When you add a field that you rent, don’t base it on the average cost of production, look at the cost of production for each field and farm.

“Reducing land charges will be the biggest adjustment in production costs,” said Roberts. “Which field is profitable and what are you willing to pay?”

Farmers tell him that they can’t give up ground, but the reality, said Roberts, is that farmers need to walk away from ground.

Roberts also advises families to stop the growth of living expenses. Living expenses have doubled in 15 years. Onfarm living expenses were $117,552 in 2015. He called on husbands and wives to curtail spending. New trucks and combines aren’t a necessity, Roberts said.

The best way to ensure you have a

to store corn.

As for soybeans, domestic demand is driven by soyoil due to biodiesel while china drives the global demand. Every year, the United States sets a new record in exports to China. He predicts soybean exports to increase again this year by about 70 million bushels.

Roberts said the biggest risk in 2017 is political should we get into a trade war with China. Roberts is still working on how to hedge for this possibility. He recommends bumping up your RA crop insurance. In addition, soyoil continues to benefit from Renewable Fuel Standard advanced biofuel mandate and soymeal from domestic livestock remains strong, which makes the price outlook for soybean the best of the three — corn, soybean and See OUTLOOK, pg. 11 wheat.

How did we get here?

Matthew Roberts offered lessons learned from the years of $8 corn and $15 beans during the bull commodity market of 2008 to 2012 to today’s market of $3 corn and $10 beans.

The demand story for soybeans begins with the global poverty rate. In 1980, people living in poverty was 44 percent compared to 9 percent today.

This massive growth of wealth has resulted in eating better, more fats, oil and meat.

“We celebrate with food. Eating better is a human response to wealth,” said Roberts.

China is the No. 1 consumer and producer of pork in the world today. That requires massive amounts of feed.

Roberts explained that Chinese soybean imports in 2015-16 is projected to be 3.05 billion bushels or 65 million acres. In 2001, China imported about 600 million bushels or 15 mil-

lion acres.

Roberts theorizes that land is the ultimate scarce resources in agriculture as that is a 50 million acre change in 15 years. The demand story for corn is less dramatic. U.S. ethanol usage is 5 billion bushels which is equal to 22 million acres. Compared to 2002, 500 million bushels of corn were used, or 2 million acres. A total of 70 million acres of additional land is needed just to meet the No. 1 and No. 2 sources of demand.

Wheat, on the other hand, has had no positive demand stories in the last 20 years. Protein and gluten-free diets has been the negative demand story for wheat.

Farmers maximized output and acreage on corn and beans, putting marginal land into production, explained Roberts.

The result is an acreage overhang in today’s market.

11

Wool sweaters get new purpose for Lima mission

WINTER DISCOUNTS MAKE IT THE PERFECT TIME TO EXPAND YOUR GRAIN STORAGE!

Newlyweds up to challenge They both understand lowering costs and risk is critical. Guentzel attends educational meetings, completed Annie’s Project in 2015, grew up in farming and assists in their seed business.

As a seed dealer, Cramblit works full-time traveling 30 to 35 miles in each direction to meet customers on their farms. He has learned that every grower farms differently and with each sale he tries to bring an added value.

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OUTLOOK from pg. 10 legacy farm is to start working on your marriage, said Roberts, who reminded the audience that financial stress is the No. 1 cause of divorce.

Even though the farm economy is not in their favor, newlyweds Angela Guentzel and Andy Cramblit are up to the challenge. Guentzel works in her family’s six-generation farm, Guentzel Family Farms near Mankato, where they grow corn and soybeans. Cramblit operates his own seed company, Mankato Valley Seed, which sells Syngenta Golden Harvest Corn and NK Soybeans.

“It is something we’ve heard before.

We have to be prepared for what we don’t know,” said Guentzel.

<< www.TheLandOnline.com >>

Make More Money.... Build A Grain Bin!

THE LAND, DECEMBER 23, 2016

A steady, dependable sorce of these ished products. That gives better

By DICK HAGEN warmth and keeps the fabric wool sweaters can be a challenge. LuckThe Land Staff Writer ily, the sweater season in thrift shops is tight.”

ST. PAUL, Minn. — Jim Wood’s booth at the Minnesota Beef Expo Lima is a coastal city which has in full swing now. was covered with stacks of wool mostly temperate climates; but “We’ll check these shops as time permittens, stocking caps and alpaca the Woods also work in a more mits to see what we can use and we want scarves. His wife, Susan, knits mountainous village further to get them at a good price. We have peohundreds of theses items from north. The children they work ple that donate sweaters too which is “old wool.” with suffer with cerebral palsy. also a big help,” Jim said. “We have a Pneumonia and tuberculosis are local thrift shop in Cokato which we freThe purpose of this repurposed often additional challenges, espe- quent often. When we get into the Twin wool is to finance their mission — cially during the winter season Cities we source thrift shops, church Without Borders International — which is a wetter and chillier envi- sales and garage sales can be good in Lima, Peru. ronment. sources of good used wool sweaters also.”

“We repurpose old sweaters, line Susan is both a knitter and artthem with polar fleece, then sew Doing God’s will in this unusual misist. them. All our proceeds go to our sion, 3,000 miles from Cokato, seems to mission in Lima, Peru,” said Jim “I do some cutting to help take agree with Jim, 53, and Susan, 50.

Wood. “My wife and I started our these sweaters apart, separating Both are in good health. non-profit business about 10 years Photo by Dick Hagen the sleeves from the body area,” Without Borders International ago in Lima. We’re working in the Jim Wood displays a pair of mittens his wife Susan said Jim. “Then she goes about reaches across borders to improve the deaf community and disabled com- makes out of old sweaters. The Woods sell the matching up the various colors quality of life for those who are disadmunity with educational efforts to mittens to finance their mission - Without Borders which are why we have such a vantaged by providing critical services help improve the lives of these dis- International - in Lima, Peru. blaze of color in these various mit- to help them spiritually, vocationally, advantaged people.” tens. What’s left from these repur- emotionally and socially. Jim Wood posed sweaters we donate to a firm can be reached at: jim.wood@wbint.org; While the Woods seek donations to nity in Peru. help finance their efforts, the knitting Educational systems are lacking in that uses these leftovers for insulation or call (952) 297-6692; or visit their and selling of these many wool mittens Lima. They don’t have interpreters, so in area homes. Every part of the Facebook page at Without Borders and other items helps cover their oper- they mainstream students into their sweater gets used.”

International. ❖ ating costs. schools without any support. Jim noted The couple’s work stems from a 1999 that usually their education peaks at mission trip made by Susan. She was a about the second or third grade level. sign language interpreter working in The Woods, who live in Cokato, Minn., Minneapolis schools. “She found out search extensively to source their wool about this deaf community in Lima, items for repurposing into mittens and Peru, and took them to heart as a new scarves. mission for her work and mine,” “We scour Goodwill and thrift shops explained Wood. and church sales and donations,” Jim The Woods purchased a house for a explained. “If there’s a wool sweater deaf pastor in Lima. Currently, there out there, we try to purchase at a reaare about four projects they are work- sonable price. We want to have 80 pering on in the deaf and disabled commu- cent or more wool content in our finBIG YIELDS, LOW CROP PRICES, LOW STEEL PRICES &

11

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THE LAND, DECEMBER 23, 2016

12

Property tax credit is good start in farm relief

By MARIE WOOD The Land Associate Editor NORTH MANKATO, Minn. — Le Center farmer Dale Tiede said he has built three schools in the area where he farms, yet because he doesn’t live within the school districts he has never had the opportunity to vote on the capital referendums.

“That’s taxation without representation,” said Tiede.

Rapidly rising property taxes were examined at the Rural Legislative Forum at South Central College in North Mankato on Dec. 8. Due to rising farmland values, farmers are paying a higher tax burden than those in town to build rural schools, yet commodity prices are low and many farms are Dan Lippert operating at a loss or break-even.

Property tax relief in the form of a permanent 40 percent tax credit on capital referendums was approved in the 2016 legislative session with bipartisan support. The measure was part of a larger tax relief bill that Gov. Mark Dayton did not sign, which is called a pocket veto.

The tax credit is likely to be revived in the 2017 legislative session, beginning Jan. 3.

Dan Lippert, Kandiyohi Farm Bureau President, said farmers pay six to 10 times as much for a school referendum than town residents. “Farmers want good schools and good strong communities as much as anyone,” said Lippert. “Our question always went to the equity.”

Lippert sees the tax credit as a good first step to bring equity to the system.

Tiede called the tax credit a Band-Aid. Tiede said, for many farmers, their land is their retirement plan.

He asked how many people would vote yes to taxing their 401(k).

Farm taxes have increased over 100 percent since 2006, according to Eric Willette, property tax research director of the Minnesota Department of Revenue. The tax credit will provide $42 million a year in relief for existing referendums, but the price tag will go up if more school capital referendums pass. According to the Mankato Free Press, a $90 million ag land tax credit toward district levy payments will be part of budget discussions. The Minnesota budget operates on a two-year cycle.

“The traditional way of equalizing education doesn’t take into account the special circumstances of farmers who have a lot of property value, but not necessarily a lot of ability to pay property taxes,” said Willette.

Another rub is property taxes pay for services such as roads, police and fire departments, health and human services and operating schools. A farmer may only use the county roads in the spring and fall. Two property owners may pay the same amount of taxes, but they don’t use the same amount of services.

Tom Warmka, farmer and Faribault County commissioner, discussed his district’s referendum to build the $28 million United South Central School in Wells. The referendum failed multiple times before passing and

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Tom Warmka caused a rift in the community between those who are happy about the new school and those who are not.

The referendum affects roughly half of Faribault County. In the portion of the county paying for the referendum, Warmka said farmers are paying roughly $20 more per acre in property tax for homesteaded farmland and $60 to $70 an acre for nonhomesteaded farmland.

“Farmers are not against building schools. … We want to have it done fairly,” said Warmka, adding that it may have been easy on $4 corn. “Try it on $3 corn. It don’t work.”

In fact, farm-heavy school districts have lower passage rates on school capital referendums than other districts, according to the Department of Revenue.

That’s why the Minnesota School Board Association supports the tax credit. Kirk Schneidawind, executive director of the Minnesota School Board Association, noted it’s a hard sell to get capital referendums passed in rural areas. He admitted that the credit doesn’t go far enough, but it’s a good start.

“It’s going to provide our rural districts a little more equity and give farmers a little bit more tax relief, who in turn will hopefully support bond referendums in the future,” said Schneidawind.

Iowa Iowa property tax rates were also explored. Chuck Wingert, of Wingert Realty and Land Services in Mankato, specializes in farmland, often handling properties along the Iowa-Minnesota border. He noted that Iowa’s total real estate taxes are $20-24 an acre, but when you go over the state line to Alden, property taxes jump to $67-74 an acre.

At a seminar in Des Moines, Wingert learned that Iowa has a 1 percent sales tax that annually raises $380 million, dedicated solely to school districts.

“People go to school, real estate doesn’t. How do we balance the needs and not overburden real estate?” said Wingert.

Willette, of the Minnesota Department of Revenue, also explained that in Iowa, property tax on farmland is calculated differently. In Minnesota, farmland is based on sales of comparable land in your area. In Iowa, farmland property taxes are based on production value or the income you can generate from the land. ❖

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13

CFANS enrollment, campus facilities are growing

Brian Buhr

We’re starting to get investments to help position us where we can engage in conversations about how do we feed the world and in the process how do we sustain the environment. Plus, of course, improving the food, nutrition and health of people around the world remains a primary focus for all of us.

Buhr doesn’t see any shift in student culture because of the election.

“We’re Americans. We’re in this together. How do we advance these big goals of food and agriculture is the bigger question. The agricultural investment in research and development is critical if we are to sustain this environment and feed the world,” said Buhr. “Yet we’ve seen a reduction in this funding over the past 15 to 20 years. I think we are a victim of success. We’ve been successful in leading the frontier of building productivity, so we rest on our laurels. But what most people don’t realize is that when we make investments in agriculture, it’s a 25-30 year span before they move from invention to productive status. We’re seeing declining rates of growth and productivity. We’re still living off the laurels of the Borlaug era. When are we going to have that next generation of Borlaugs? You won’t see it today.

You’ll see it 10 years out.” ❖

<< www.TheLandOnline.com >> “Where Farm and Family Meet”

Our rural neighbors across the Mid“We try to keep our students politiwest see it also. So we’re hopeful posi- cally wise, but that can be a constantly tive things continue to steer us toward changing agenda,” said Buhr. “But polia better future.” tics and policy are two different things.

We do focus on policy quite a bit, espeStudent body The market outlook for specially- cially in our applied economics and our trained students graduating from ag business programs, two areas with CFANS is quite good, according to real growth. We also have a new joint program with the Carlson School of Buhr.

Business that takes us into a new pro“I like to say that in agriculture, you gram, executive agriculture, here at can’t confuse the climate with the CFANS. We’re trying to stay engaged weather. The climate is that we have a with policy but it’s difficult because growing need for students coming into policy seems to move fast these days.” food and agricultural science,” Buhr said. “Yes, we look at this downward trend in farm prices. But we can look at these demographics as destiny. We have a growing population of young people that are now beginning to see the growing demand for researchers, scientists, biologists, agronomists and food technicians in this amazing industry called agriculture. And they’re excited about this new future.”

He indicated starting salaries for college grads in agri-business have softened somewhat, but $50,000 to $60,000 starting salaries are routine these days.

“We’re also seeing opportunities to move up in many of these companies,” he said. “Our agri-business complex has a significant number of older employees needing young replacements. Also, there is lots of activity with smaller mid-size innovative companies. Some are technology breakthroughs which ramp up to a fast track.

So there’s an interesting complex of new opportunities developing for this Brad Krumrey younger generation. If they’re interowner ested in science, technology, engineer320-979-9221 ing, biology, it’s all there.” office: CFANS has seen a shift in the gender 320-833-2228 ratio, with the number of female students exceeding the number of male fax: students. The total undergraduate pop320-833-2204 ulation for fall 2016 is 2,018 students, • Repairs with a growth of about 1 percent each • Installation year in the last five years. There are • Portable Welding roughly 700 graduate students.

• Crane & Boom Truck Service Due to this tumultuous election year, 217 E. Hall Ave. / P.O. Box 126 / Buffalo Lake, MN 55314 • www.ksmillwrights.com are students more engaged in political events on campus?

THE LAND, DECEMBER 23, 2016

By DICK HAGEN The Land Staff Writer ST. PAUL, Minn. — Brian Buhr, dean of the College of Food, Agricultural and Natural Resource Sciences at the University of Minnesota, has seen student enrollment increase yearly, which he attributes to top-of-mind awareness of how food is produced and what’s happening in the environment and agriculture.

“We often think of our primary function being to assist Minnesota farmers and agri-businesses, but this new avenue of what does it mean to have sustainable agriculture is creating new interest,” Buhr said. “What does it mean to have cleaner, healthier soils in this process of food production?”

The interest in total food production, a cleaner environment and a sustainable agriculture is changing the makeup of the student body on the St. Paul campus also.

“We now have more non-farm kids on our campus than farm kids,” Buhr said.

“I sometimes joke about this being the Food Network phenomenon. So we’re seeing more interest from our traditional agricultural audience but also a much broader audience. We’re looking at the St. Paul campus where all of Minnesota can come together in conversation, engage in research and education around agriculture, food and natural resources.”

The impact is felt in different ways.

For example, the state Legislature two years ago provided special funding for the restoration of the Bell Museum of Natural History, which will construct a new state-of-the-art facility on the St. Paul campus, sure to garner interest.

“We have the new bee pollinator lab.

Our scientists are now researching the intersection between crops and pollinators. This potentially is a huge project because of the tremendous impact pollinator bees have on our total food supply. We’re working on a new dairy research facility,” he said. “So we’re starting to get investments to help position us where we can engage in conversations about how do we feed the world and in the process how do we sustain the environment. Plus, of course, improving the food, nutrition and health of people around the world remains a primary focus for all of us.”

Buhr commended the Legislature on being supportive of the college’s growing mission on the environment, natural resources and agriculture.

“These are so intertwined,” he said.

“Our elected officials are seeing this.

13

THE LAND, DECEMBER 23, 2016

14

Farmers’ 2015 corn ARC-CO payments raise questions Many farm operators in the upper midwest received a significant 2015 farm program payment on their corn-base acres during this past October from the U.S. Department of Agriculture Farm Service Agency, while other farm operators received much smaller payments. Producers in some counties received no 2015 pay- FARM PROGRAMS ment. One of the hardest

By Kent Thiesse things for producers to understand is why there is such a large variation in 2015 corn Ag Risk Coverage (ARCCO) payments from county to county, especially in neighboring counties. Most crop producers in Minnesota and surrounding states are enrolled in the county yield-based ARC-CO farm program choice on their corn and soybean base acres.

The ARC-CO program utilizes national average grain prices and average county yields to determine payments. ARC-CO payments for corn, soybeans or any other crop are paid when the actual county revenue for a crop in a crop year falls below the calculated county revenue guarantee for that crop. The actual county revenue is the final FSA county yield for a crop for that year multiplied by the final national market year average price for the year for that crop. If that final county revenue amount is lower than the county revenue guarantee for that crop, producers in that county that are enrolled in the ARC-CO farm program would earn an payment for that year. Each county also has a maximum ARC-CO payment for each crop.

The market year average price is the 12-month average price for corn and soybeans from Sept. 1 in

“Where Farm and Family Meet”

<< www.TheLandOnline.com >>

MARKETING

South Central Minnesota Example: COUNTY

2014 2014 Payment County Yield (per Base Acre)

Nicollet Blue Earth Brown Le Sueur Sibley Waseca

$75.54 $79.59 $76.44 $75.54 $77.79 $81.39

144 157 159 142 129 156

2014 % of 2015 2015 Benchmark Yield Benchmark Yield Payment County Yield (per Base Acre)

168 177 170 168 173 181

86% 89% 94% 85% 75% 86%

0 $48.36 $49.57 $1.95 $55.79 $69.96

207 201 188 201 186 199

2015 % of Benchmark Yield Benchmark Yield

162 172 162 160 162 176

128% 117% 116% 126% 115% 113%

Southwest Minnesota Example: COUNTY

Lyon Yellow Medicine Redwood Lincoln Murray Pipestone Rock

2014 2014 Payment County Yield (per Base Acre)

2014 % of 2015 2015 Benchmark Yield Benchmark Yield Payment County Yield (per Base Acre)

2015 % of Benchmark Yield Benchmark Yield

$69.70

143

155

92%

0

192

147

131%

$74.64 $76.44 $69.25 $78.24 $71.94 $79.14

149 160 146 147 129 128

166 170 154 174 160 176

90% 94% 95% 84% 81% 73%

$37.18 $21.96 $23.85 $15.82 0 $31.29

187 197 180 199 192 199

158 162 149 162 149 166

118% 122% 121% 123% 129% 120%

Note — All of the listed 2014 and 2015 corn ARC-CO payments are per corn base acre, which have been factored by 85 percent.

The federal sequestration reduction of 6.8 percent has not been factored into the listed payments. the year of production to Aug. 31 the following year, with market year average prices finalized on Sept. 30 of the following year. The final national market year average prices for 2015 were $3.61 per bushel for corn and $8.95 per bushel for soybeans. These were the prices used to determine if producers were eligible for a 2015 ARC-CO payment this past October.

The revenue guarantee for a given crop is the benchmark revenue times 86 percent (.86). The benchmark

revenue is the five-year (previous five years) county average yield, dropping the high and low yield. This is multiplied by the benchmark price, which is the fiveyear (previous five years) market year average price, again dropping the high and low price. The national benchmark prices for both 2014 and 2015 were $5.29 per bushel for corn, and $12.27 per bushel for soybeans. Since these benchmark prices were considerSee THIESSE, pg. 23

Multiple variables will impact ARC-CO payments the adjusted national average price from Sept. 1, 2016, through Aug. 31, 2017, with the market year average price being finalized on Sept. 30, 2017.

Assuming a $3.35 per bushel corn market year average price level, 2016 corn ARC-CO payments would begin at approximately 122 percent of the county benchmark yield, and counties that were at 108 percent of the county benchmark yield or lower would receive the maximum 2016 ARC-CO payment.

This means that for counties with a benchmark yield of 160 bu./acre, 2015 corn ARC-CO payments would be initiated at a final 2016 county yield of approximately 195 bu./acre, and the maximum payment would occur at a final county yield of about 172 bu./acre. If the 2016 county benchmark yield is 175 bu./acre, 2016 corn ARC-CO payments would be initiated at a final county yield of approximately 213 bu./acre, and the maximum payment would happen at a final county yield of about 189 bu./acre.

Resources available • “Estimating 2015 Corn and Soybean ARC-CO Payments,” which looks at the final 2015 ARC-CO payments for corn and soybeans, as well as other useful information on ARC-CO payments. To receive a copy, e-mail: kent.thiesse@minnstarbank.com • The USDA FSA ARC/PLC website contains 2014 and 2015 ARC-CO payment maps, as well as a spreadsheet with actual yields, benchmark yields and payment rates for all crops for every county in the U.S. http://www.fsa.usda.gov/programs-andservices/arcplc_program/ Kent Thiesse is a government farm programs analyst and a vice president at MinnStar Bank in Lake Crystal, Minn. He may be reached at kent.thiesse@minnstarbank.com or (507) 726-2137. ❖

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186 bu./acre, respectively. The percentage of benchmark yield was 128 percent in Nicollet County, 116 percent in Brown County, and 115 percent in Sibley County — resulting in 2015 corn ARC-CO payments per base acre of zero in Nicollet County, over $48 in Brown County, and over $55 in Sibley County.

• Lyon County had a 2015 benchmark yield of 147 bu./acre, Pipestone and Lincoln Counties had 2015 benchmark yields of 149 bu./acre. Lyon and Pipestone counties both had a final 2015 corn yield of 192 bu./acre, while Lincoln County had 180 bu./ acre. The calculated percentage of benchmark yield was 131 percent in Lyon County, 129 percent in Pipestone County, and 121 percent in Lincoln County, which resulted in a zero 2015 corn ARC-CO payment in Lyon and Pipestone counties, and nearly $24 per corn base acre in Lincoln County.

Another factor which may have impacted the 2015 corn ARC-CO payments in neighboring counties involves situations where a producer has land in two or more counties. In that situation, the producer could have chosen to do their FSA administrative work in each individual county, and any ARC-CO payments are based on where the FSA farm unit is located.

However, the producer could also have chosen to combine their farm units and do all their FSA work in one county, in which case any ARC-CO payments are based on the county chosen as the FSA administrative county, regardless of where the land is located.

From our earlier examples, let’s say a producer had corn aces in both Lyon and Yellow Medicine counties in 2015, and had combined all acres under the same FSA administrative county. If the producer had chosen Yellow Medicine County as the administrative county, the 2015 payment would be about $37 per base acre on all corn base acres in both counties.

However, if the producer had chosen Lyon County as the administrative county, the 2015 corn ARC-CO payment would be zero on all corn base acres in both counties.

Looking ahead The national benchmark prices for the 2016 crop year will be $4.79 per bushel for corn and $11.87 per bushel for soybeans. The lower 2016 benchmark prices for corn and soybeans will likely lower the potential 2016 ARC-CO payments in many instances. Many counties in Minnesota will have the same county corn benchmark yield for 2016 as existed for 2015, due to a high yield year in 2010 being dropped from the five-year benchmark yield calculation and being replaced by another high yield year in 2015. Soybean county benchmark yields are also likely to be similar for 2016 as the previous year. The result will be very similar ARC-CO payment calculations for the 2016 crop year that existed for 2015, with the biggest variable being the final 2016 market year average price.

As of Dec. 1, USDA is projecting a 2016 market year average price of $3.35 per bushel for corn and $9.45 per bushel for soybeans. These market year average price estimates will continue to be adjusted

by USDA in the monthly World Agricultural Supply and Demand Estimates report, which is usually released around the 10th of each month. The final 2016 market year average corn price will be based on

THE LAND, DECEMBER 23, 2016

THIESSE, from pg. 14 ably higher than the final 2015 market year average prices, the likelihood of 2015 ARC-CO payments was increased in many counties, especially for corn.

The relationship between the final FSA county yields and the county benchmark yield for a given year (which can be expressed as the percent of benchmark yield) is extremely important in calculating the level of ARC-CO payments in a county for the year. For the 2014 corn ARC-CO payments in most of Minnesota, this was not a big factor, as most counties had below average crop yields, and a fairly low percentage of benchmark yield. The result was that most counties received the maximum 2014 ARC-CO payment for corn, which was paid in October 2015.

However, 2015 corn yields in most counties in Minnesota were well above average, resulting in much more variation in the percentage of benchmark yield, and ultimately in widely variable 2015 corn ARC-CO payment amounts, which were paid in October 2016.

Counties with a percentage of benchmark yield that exceeded 126 percent most likely received a zero 2015 payment, while counties that had a percentage of benchmark yield of 111 percent or lower likely received the maximum 2015 payment. Counties with a percentage of benchmark yield of 112-126 percent most likely received a partial payment.

The multiple variables make it very difficult for producers to understand why there was such a large variation in payments in counties in the same relative area, especially when all counties are using the same national market year average prices. The big difference lies in the dynamics of the final 2015 FSA yields and the 2015 benchmark yield levels, and ultimately in the percentage of benchmark yield.

Observations on chart examples: • All counties listed in both examples received the maximum 2014 ARC-CO payment, due to low 2014 corn yields and a low percentage of benchmark yield.

Counties with the higher 2014 benchmark yields had a higher maximum ARC-CO payment rate, based on the pre-set calculation formula.

• All counties listed in both examples had their corn benchmark yields decline from 2014 to 2015 in a range from five to 12 bushels per acre. This decline in the benchmark yield resulted in lower maximum payment potential in 2015. Counties with greater declines in 2015 benchmark yields had a lower likelihood of receiving 2015 ARC-CO payments than neighboring counties at comparable final 2015 actual yield levels.

• In southcentral Minnesota, the 2015 corn ARCCO payments ranged from zero in Nicollet County to nearly $70 per corn base acre in Waseca County. The final 2015 corn yields ranged from 186 bushels per acre in Sibley County to 207 bu./acre in Nicollet County. In southwest Minnesota, the 2015 corn ARCCO payments ranged from zero in Lyon and Pipestone counties to over $37 per corn base acre in Yellow Medicine County, while 2015 corn yields ranged from 180 bushels per acre in Lincoln County to 199 bushels per acre in Murray and Rock counties.

• It is interesting to note that Nicollet, Brown and Sibley counties all had a 2015 benchmark yield of 162 bu./acre, with final 2015 corn yields of 207, 188 and

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THE LAND, DECEMBER 23, 2016

THE LAND, DECEMBER 23, 2016

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THE LAND, DECEMBER 23, 2016

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Local Corn and Soybean Price Index

THE LAND, DECEMBER 23, 2016

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Cash Grain Markets corn/change* soybeans/change* Sauk Rapids Madison Redwood Falls Fergus Falls Morris Tracy Average: Year Ago Average:

$2.90 $3.00 $2.99 $2.80 $2.88 $2.95

.00 .00 -.03 -.08 -.01 -.08

$8.80 $9.20 $9.30 $9.05 $9.19 $9.25

-.43 -.32 -.43 -.38 -.25 -.42

$2.92

$9.13

$3.25

$8.12

DEC ‘15

JAN

FEB

MAR

APR

MAY

JUNE

JULY

AUG

SEP

OCT

NOV

DEC

Grain prices are effective cash close on Dec. 20. The price index chart compares an average of most recently reported local cash prices with the same average for a year ago. *Cash grain price change represents a two-week period.

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Grain Outlook Interest rate hike has little effect

Livestock Angles Cattle prices make moves

The following marketing analysis is for the week ending Dec. 16.

CORN — The markets have moved into holiday mode with little interest in much of anything and resulting in thin volumes. Grower sales have slowed to a trickle, which is allowing basis levels to improve. March corn pushed higher early in the week and tested the November high resistance at $3.65.25 per bushel. In the second half of the week, March corn broke a streak of four higher closes. The $3.50 to $3.65.25 range may bookend prices until after the holidays.

The main event of the week PHYLLIS NYSTROM CHS Hedging Inc. was watching forecasts for St. Paul Argentina’s growing areas. Overall, the forecast for rain events beginning Dec. 17 and continuing through at least Dec. 19, and likely beyond, limited rally attempts. However, uncertainty over the weather outlook, fund short covering, and no natural sellers hitting the market, kept the downside in check as well.

The Dec. 14 Federal Reserve announcement for a .25 basis point interest rate hike was well anticipated by the trade. This is the first rate increase since December 2015 and sent the dollar index to highs not seen since 2002! It had little effect on commodities, but it did push the Dow to a record 19,966 high in post-announcement trading. The Fed indicated they will be looking at three rate increases per year through 2019.

Weekly export sales were above expectations at

Volatility has not left the livestock markets yet.

The beginning of the month of December has seen both cattle and hog prices move in dramatic fashion.

This behavior is not likely to disperse anytime soon in either the futures or cash markets. Weather will play an important role as we move further into the winter months keeping that uneasiness to the livestock markets.

As for the cattle market, prices have been in roller coaster mode for the past several months and the current situation is not likely to change this pattern.

The continuing war between supply and demand is very eviJOE TEALE dent resulting in the sharp price Broker fluctuations seen on a weekly Great Plains Commodity basis. Cattle numbers at present Afton, Minn. are on the lighter side, while demand for beef is also weaker due to several circumstances. One being the strong U.S. dollar which is retarding export business; and the other is weaker domestic sales due to the price to the consumer vs. the other competitive meats. With winter weather now upon us, this is likely to exaggerate the volatility even more in the weeks ahead.

The current range in both cash and futures trade appear to be (for the most part) setting the boundaries as far as support and resistance for both in the weeks ahead. Unless changes take place in either the supply or the demand, look for the market to move quickly back and forth within the parameters.

There is one concern that has been seen in the past few Cold Storage reports that suggest beef is moving slower than had once been projected. The fact that

See NYSTROM, pg. 19

See TEALE, pg. 20

Grain Angles Market by numbers Farming is inherently risky. On the flip side, farmers have access to contracts and insurance products that most industries would desire. Using these risk management tools can help manage your farm by the numbers, not hope, fear and greed. Additionally, most farmers have a direct connection to their farm and the land, so trying to eliminate emotional decision-making can be difficult. But it is necessary when making grain marketing decisions. In every market, there is a hope/fear/greed pendulum that swings back and forth. For example: Hope: I’m going to hope the market goes up after I plant or KURT LENSING store my crop.

AgStar VP & Grain Industry Specialist Fear: I fear prices are going to Waite Park, Minn. continue to go lower or I fear I sold too much too early.

Greed: I’m not selling more because the price should or will or “have to” go higher.

No matter what your current thoughts are, you can find some expert that will agree with you or help rationalize just about any decision. I will argue we should think of our crop farms as a manufacturing business — the key word being “business.”

A business that has 20 percent, 30 percent or 50 percent of their inputs bought one or two years in advance, and the ability to sell their output at a profit would strongly consider this option.

Today, as many farmers own land or have multiple years on some ground they lease, land cost alone can account for one-third of input costs. If you sell or hedge grain at profitable levels and the price rises, See LENSING, pg. 19

Information in the above columns is the writer’s opinion. It is no way guaranteed and should not be interpreted as buy/sell advice. Futures trading always involves a certain degree of risk.

Argentina weather drives bean price into holiday a 5.9 percent increase in exports year-on-year.

The total commitment line accounts for nearly 81 percent of the yearly forecast. We need 11.7 million bushels per week of export sales to hit the USDA’s 2.050 billion bushel export prediction. Weekly export inspections were 67.5 million bushels, staying well ahead of the 25.6 million per week needed to achieve the USDA export objective.

Total export commitments to China and unknown are record-high with 7.9 mmt for China and 6.5 mmt to unknown. In China this week, it was announced that six soybean processing plants would be closed at least through Dec. 15, and possibly through the end of the month, due to air pollution complaints. The facilities account for 100,000 metric tons of soybean crush per week. The news sent China’s meal prices to five-month highs, but it did not translate into strength in the U.S. meal market. Reportedly, the plants did reopen as of Dec. 15. India announced its soymeal exports could exceed 2 mmt this year compared to just 261,000 metric tons last year. This is attributed to a huge bean crop this year.

Safras put out the biggest Brazilian soybean production number we’ve seen so far at 106.1 mmt. This is up 2.6 mmt from their previous estimate. Abiove upped their Brazilian meal production number by 2 mmt., citing higher biodiesel blend. They are projecting Brazil’s soybean crop at 101.7 mmt vs.

USDA’s 102 mmt figure. Abiove is pegging bean exports at 58 mmt compared to USDA’s 58.4 mmt estimate. It’s been theorized that Brazil’s soybean har-

MARKETING

vest could be 7-9 percent complete by the end of January due to early harvest in Mato Grosso. This compares to 4-6 percent complete by the end of January over the last four years.

In Argentina, they usually have 95 percent of their soybean crop planted

by Jan. 1. With the weather pattern expected to get wetter, they may have trouble reaching that pace this year.

If the weather pattern does provide rain for Argentina, it will be negative for soybean prices, especially with the big Brazilian production estimates and nearly ideal weather in Brazil. As of Dec. 15, Argentina’s soybean planting was estimated at 67 percent complete vs. 72.4 percent complete last year. Around 50 percent of Argentina’s areas are in the dry category, but if the rain proves correct, that could be cut to 15 percent.

Outlook: For the week, January soybeans were just .75 cents lower at $10.36.75; July dropped 2.75 cents to $10.59 and November fell 5.25 cents to $10.19.75 per bushel. March meal was $1.50 lower at $321.40 and soyoil was 0.18 lower at 37.03.

Soybeans are at the mercy of the meteorologist and the forecasts for rain in South America. The pace of U.S. export sales and shipments is expected to slow and this could be a drag on prices into the end of the year.

New sales announced this week included 389,000 metric tons of beans to China and 205,000 metric tons to unknown. It’s theorized that China has continued to be a buyer to stay in front of their own weakening currency. ❖

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at $3.69/bu. March corn posted a key reversal lower in post-export sales trading and confirmed the move lower into the weekend. As of this publication, we could see the upper end taken out if Argentina’s rainfall is a disappointment, but lower if the rain develops as predicted. As of Dec. 15, Argentina’s corn planting was estimated at 57 percent complete compared to 59 percent complete last year.

SOYBEANS — South American weather forecasts were the hot topic in soybeans this week as confidence grew that Argentina would get some needed rain. Traders, however, are keeping some risk premium in prices until they actually see the rain on the ground. By the time you read this, we’ll know whether or not the rain developed over the Dec. 17-18 weekend. The results of the rain will drive the direction of soybean prices into the holiday.

The November National Oilseed Processors Association Crush report released this week was 160.7 million bushels compared to trade guesses for 162.6 million bushels. This was still the second largest crush ever for the month of November. Soyoil stocks were 1.34 billion pounds vs. estimates for 1.381 billion pounds. NOPA did announce that a crushing plant in Mississippi joined NOPA in October and their data was included for the first time on the November report.

Weekly export sales exceeded projections with 73.8 million bushels of exports. Total commitments at 1.6 billion bushels are 29 percent ahead of last year when the USDA is calling for

THE LAND, DECEMBER 23, 2016

NYSTROM, from pg. 18 59.7 million bushels. Total export commitments are 77 percent ahead of last year while the U.S. Department of Agriculture is anticipating a 17.2 percent increase in exports year on year.

Commitments of 1.2 billion bushels represents 58.5 percent of the USDA’s 2.225 billion bushels export projection.

We need 26.2 million bushels per week to hit the USDA’s target. Export inspections, what actually gets shipped, were only 33.8 million bushels this week when we need 41.3 million bushels per week to reach the USDA export outlook.

Weekly ethanol production set a new overall record at 1.04 million barrels per day, up 17,000 barrels per day from the previous week. The four-week average production is 3.3 percent higher than a year ago. Ethanol stocks, however, grew from 18.5 million barrels to 19.1 million barrels, but are down 6 percent from last year.

Thanks to spiking ethanol prices, net ethanol margins were up 30 cents per gallon this week to 59 cents per gallon.

The U.S. attaché in China upped his corn production estimate to 218 million metric tons compared to USDA’s 219.5 mmt figure. However, he only sees corn imports at 1 mmt vs. USDA’s 3 mmt forecast.

Outlook: For the week, March corn was down 3.25 cents at $3.56.25; July fell 3 cents to $3.70.5; and December was 2 cents lower at $3.86.5 per bushel. March corn continues to be bracketed by $3.56 to $3.50 on the lower end and $3.65.25 on the upper end. The next resistance would stand

19

Lensing: Ask yourself if you can afford a drop in price about taking some risk off the table.

Selling your crop production can be a combination of one or many contracts like futures, options, and forward or cash contracts. Some contracts allow a price minimum. Others have a set cash price. Still other contracts allow price floors and ceilings. In order to effectively use these contracts, you must understand how they work.

No matter what types of contracts you use or don’t use, having a written plan can help. A written marketing plan has both price and time targets.

For example, it may state that for 2017, to protect 30 percent of production, soybeans must sell at $9.25. Having a plan in place with specific price and time targets will help to manage our business by the numbers, not emotion.

Some argue there are not opportunities for profitable sales. However, the market has given opportunities for profitable sales to completive producers. Having a marketing plan in place over the course of 24 months can give you more opportunities to capture profitable market swings. If you start a marketing plan at harvest, then you are reducing opportunity to capture a market rally in half. Looking ahead one and two years needs to become a routine part of grain marketing.

Having a separate grain marketing plan for 2016, 2017 and 2018 will do two things: Reduce the chances of being forced to limit losses after the crop is planted or harvested; and help to reduce irrational passes on profitability.

If you have questions about a written marketing plan, or how some grain marketing contracts work, there are many resources available to fit your needs. Please contact your local AgStar representative for more information or additional education events.

For more insights, check out www.AgStarEdge.com.

AgStar Financial Services is a cooperative owned by client stockholders. As part of the Farm Credit System, AgStar has served 69 counties in Minnesota and northwest Wisconsin with a wide range of financial products and services for more than 95 years. ❖

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LENSING, from pg. 18 that’s a good thing — sell more! Selling into a rally is called scale up selling.

Trying to “cherry pick” the top is not possible to do consistently and will not work long term.

At the time of this writing, many producers were able to lock in profitable soybean sales for 2016 and 2017. It seems there continues to be more hope of the prices going higher, which they could. We should ask ourselves a few questions when choosing not to lock in profits. Can I afford a $.50, $1, or $2 move downward on 100 percent of my production? Our risk-taking ability should meet our appetite for risk. If the answer is that we cannot afford a drop in price on a portion or any of our production, we need to be thinking

THE LAND, DECEMBER 23, 2016

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Higher milk production offset by low animal numbers The following marketing analysis is for “Import forecasts were lowered from last the week ending Dec. 16. month for both fat and skim-solids bases.

Fat basis ending stock forecasts for 2016 The U.S. Department of Agriculture and 2017 were raised on higher expected again lowered its milk production forecheese stocks. Although the skim-solids casts for 2016 and 2017 from a month basis ending stock forecast for 2016 was ago in its latest World Agricultural Supraised on higher-than-expected cheese and ply and Demand Estimates report, “as NDM stocks, the forecast for 2017 was slower growth in cow numbers more unchanged as robust NDM exports are than offset slightly higher growth in expected to draw down stocks during the milk per cow.”

MIELKE MARKET year.

WEEKLY 2016 production and marketings were “Price forecasts for cheese and butter projected at 212.4 and 211.5 billion

By Lee Mielke were raised for 2016 on current price pounds respectively, down 100 million strength, but forecasts for NDM and pounds from last month’s report on whey prices were unchanged. Prodproduction. If realized, 2016 producuct prices were forecast higher for tion would be up 3.8 billion pounds or 2017 as domestic demand strength is expected to 1.8 percent from 2015. carry into next year and higher export demand is 2017 production and marketings were projected at expected to support NDM and whey prices.”

216.8 and 215.9 billion pounds respectively, down ■ 200 million pounds on production and down 100 million pounds on marketings from last month. If As a result of the higher cheese and butter price realized, 2017 production would be up 4.4 billion forecasts, Class III and Class IV milk price forecasts pounds or 2.1 percent from 2016. were raised for 2016 and 2017. Look for the 2016 “Fat basis exports were raised for 2016 on higher Class III to average $14.75-$14.85 per hundredweight, up a nickel from last month’s report, and butter exports,” the WASDE report stated, “and compares to $15.80 in 2015 and $22.34 in 2014. The skim-solids basis exports were increased on stronger sales of lactose. Fat basis exports for 2017 2017 Class III average was raised to $15.85were reduced on expected increased competition in $16.65/cwt, up 45-55 cents from a month ago. cheese markets, but strength in lactose and nonfat The Class IV milk price is now forecast at $13.65dry milk exports are expected to support higher $13.85/cwt, up a dime from last month’s projection skim-solids basis exports. and compares to $14.35 in 2015 and $22.09 in 2014.

Look for a 2017 average of $14.20-$15.10, which is up 55-65 cents from a month ago.

■ As it always does, USDA’s monthly Livestock, Dairy, and Poultry Outlook, issued on Dec. 15, echoed projections contained in the WASDE report. The Outlook reports that, “Based on recent data, the fourth quarter forecast for number of milk cows is 9.335 million head, 10,000 fewer than last month’s forecast. Milk per cow in the fourth quarter was forecast five pounds higher, at 5,620 pounds per head.”

“Small changes have been made in feed price forecasts from last month. The corn price forecast for 2016/17 is $3.05-$3.65 per bushel, an increase of a

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MARKETING

nickel on both ends of the range. The soybean meal forecast was unchanged at $305-$345 per short ton.

The alfalfa hay price decreased from $137 to $135 per short ton from September to October. Based on recent data, the milk cow estimate for the year has been reduced to 9.36 million head, 10,000 less than forecast last month. Milk per cow for the first quarter is forecast 10 pounds higher but is unchanged for the remainder of 2017.”

■ Price strength returned to the Chicago Mercantile Exchange the second week of December despite plenty of product making its way to Chicago. The cheddar blocks, after three weeks of decline, closed the week at $1.80 per pound. This is up 9 cents on the week and 36 cents above a year ago. The barrels closed Dec. 16 at $1.70, up 12.25 cents on the week, 25 cents above a year ago, but an unsustainable 10 cents below the blocks. On the week, 23 cars of block traded hands on the week and 30 of barrel.

Midwestern cheese makers report orders are still strong, according to Dairy Market News. Some manufacturers say they are slightly behind on orders or have been able to draw down on stocks. Inventories for barrels remain a little long. Some barrel manufacturers suggest they have sold a few loads of milk to bottling operations in lieu of making more barrel cheese. These manufacturers are hopeful that the spread between barrel and block prices will narrow and improve the economics. Milk supplies are generally well balanced right now and extra spot loads are not widely offered, according to Dairy Market News.

Western cheese makers continue to fill holiday orders and some additional block demand. Domestic retail demand is solid. Cheese production is active with good volumes of milk flowing into the vats.

Block manufacturing is in good balance with demand. Inventories are steady but barrel cheese is a little long, with some processors selling barrels at sizeable discounts to published prices ■ Spot butter, after dropping 12 cents the previous week, closed Dec. 16 at $2.19 per pound. This is up 12.5 cents on the week and 13 cents above a year See MIELKE, pg. 21

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Hog prices improve dramatically TEALE, from pg. 18 each month has seen an increase of beef in storage reflects that demand is slow for beef. Producers should pay close attention to market conditions and protect inventories when available.

Hogs have definitely been the winner in price improvement over the past several weeks. After a protracted move to the downside in hog prices, the prices paid for hogs has dramatically increased in the first half of December. The futures, which have gone from a deep discount at the lows seen in September to a premium in late November, have reflected the dramatic change in hog market. Pork cutouts have remained fairly stable over the past several weeks and packer margins have been very

good. Plus, the number of hogs available has decreased ever so slightly, resulting in the packer becoming more aggressive in acquiring live inventory. Thus, the turnaround from a down market to an up market for both cash and futures.

The current market conditions appear to be approaching an overbought situation plus the fact that we are nearing past resistance levels. This could bring about a slowing in the advances in both cash and futures in the weeks ahead. Obviously, weather will be a key factor on a short-term basis because of potential marketing problems. Therefore, volatility could remain high — creating sharp moves in either direction. Producers should be cognizant of both weather and market conditions and protect inventories as warranted. ❖

HighGround: U.S. dairy exports outlook looks bright The October consumer price index for all food was 248.1, down 0.4 percent from a year ago. The dairy products index is 218.2, down 1.7 percent. Fresh whole milk was down 1.8 percent; cheese was down 1.8 percent; and butter was down 6.0 percent.

Fluid milk consumption lost some ground after two months of small gains. October packaged fluid milk sales totaled 4.18 billion pounds, down 3.5 percent from September 2015, according to Dairy Market News.

Conventional product sales totaled 3.96 billion pounds, down 4.0 percent from a year ago. Organic products, at 217 million pounds, were up 6.3 percent. Organic represented about 5.2 percent of total sales for the month.

Whole milk sales totaled 1.2 billion pounds, up 1.4 percent from a year ago, with year-to-date running 4.6 percent above a year ago and making up 28.9 percent of total fluid sales. Skim milk sales were down 13.8 percent from a year ago and down 11.3 percent year to date.

Total packaged fluid milk sales for the ten months of 2016 totaled 40.65 billion pounds, down 0.8 percent from the same period a year ago. Year-to-date sales of conventional products, at 38.5 billion pounds, were down 1.1 percent. Organic products, at 2.1 billion pounds, were up 5.6 percent.

Lee Mielke is a syndicated columnist who resides in Everson, Wash. His weekly column is featured in newspapers across the country and he may be reached at lkmielke@juno.com. ❖

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imports have halved from the U.S. — down 54 percent year-to-date, January to October, while imports from Oceania were up 19 percent year-to-date,” HighGround Dairy reports.

“The outlook for U.S. exports in the coming months looks bright as the rest of the world struggles to produce incremental milk,” HighGround Dairy concludes. “If domestic and Mexican demand for dairy products remain firm, it could provide serious price support in 2017.”

■ Penn State’s Professor of Agricultural Economics, James Dunn, reports in his latest Dairy Outlook that “Corn and soybean meal prices are essentially the same as last month, with corn up 0.6 percent and meal up 4.5 percent respectively in the past month, with soybean prices up 6.75 percent.”

“The U.S. corn crop and soybean crop will have record yields and production,” Dunn states. “Exports of corn and beans are large despite the strong dollar.

“Penn State’s measure of income over feed costs rose by 7.5 percent in November from its October value, as higher milk prices combined with stable feed prices. November’s income over feed cost is 56 cents lower than last November, and the lowest November in several years. Income over feed cost reflects daily gross milk income less feed costs for an average cow producing 65 pounds of milk per day.”

■

MARKETING

THE LAND, DECEMBER 23, 2016

MIELKE, from pg. 20 ago, with six cars sold on the week.

On the morning of Dec. 16, the market jumped 9.5 cents.

Most of holiday butter production has been finished in the central region, according to Dairy Market News. Cream availability for churning is higher as cream loads moving into Class II are waning.

However, churners are not eager to buy spot loads, as internal cream supplies are adequate. Inventories are starting to build into cold storage. Requests from retailers are lower, but are generally steady from food service.

Western butter output is steady. Cream is more readily available as Class II manufacturers wind down ahead of the holiday season. Domestic butter demand is solid. Although manufacturers expect it to ease back a bit over the winter holidays, some suggest demand may stay seasonally strong for some time. There has also been relatively good international demand for butter. Many contacts are eager to see how much inventories have changed in the last month when cold storage numbers are reported on Dec. 23.

Cash Grade A nonfat dry milk finished the week at $1.02 per pound. This is 4.75 cents above the previous week and 24 cents above a year ago, with 28 cars sold.

■ October U.S. export data had some encouragement.

HighGround Dairy’s analysis reported, “China’s appetite for whey products continues to aid U.S. exports with both whey protein concentrate categories at record levels.”

However, “While total cheese export volumes experienced an impressive uptick from prior month, cheddar cheese shipments have contracted from the prior year for 26 straight months.

“The massive uptick in butter exports were shipped to Canada — 2,275 metric tons — up 797 percent year-over-year, and hint toward the Canadian Dairy Commission underestimating demand into fourth quarter and creating a domestic shortage.”

HighGround Dairy adds, “Not only were butter sales sharply higher, but cream exports took enough product away from the churn to drive U.S. butter prices higher into the holidays. In addition, nonfat dry milk, whey protein, and lactose exports continue outperforming versus the prior year as Asia has picked back up their interest for U.S. product with their primary dairy trade partners, New Zealand and Australia, finding themselves short of milk.”

“Skim milk powder exports sales reached fresh highs for 2016 and were the highest since May 2015 due to demand from Southeast Asia and Mexico,” according to HighGround Dairy.

“Export volumes improved across the U.S. dairy sector from ingredients to butterfat. The only area of concern remains cheddar cheese as competition from Oceania and the EU continue to grow.

“Oceania cheddar accounted for 58 percent of Japan’s imports so far this year while the U.S. market share dropped to 11 percent versus 18 percent in 2015 and 27 percent in 2014. South Korea’s cheddar

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THE LAND, DECEMBER 23, 2016

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Minn. legislators discuss rising health care costs

By MARIE WOOD The Land Associate Editor NORTH MANKATO, MINN. — A panel of incoming and incumbent south central Minnesota legislators discussed property tax relief for farmers and rising health care costs for people who purchase individual insurance at the Rural Legislative Forum on Dec. 8 at South Central College in North Mankato.

Rep. Bob Vogel, R-Elko New Market, knows farmers in his area are paying $38,000 to $40,000 per year for health insurance premiums. “We took the uninsured and made them insured,” said Vogel, but he added that the problem now is many of the insured that have been paying for insurance can’t afford it any longer.

Individual health care insurance premiums are expected to go up by 50 to 67 percent for 2017. According to the Mankato Free Press, the rate increase affects about 250,000 people

who buy their own health “The system is now in dire insurance; some through the straights,” said Dahms.

MNSure Exchange. The new Gov. Mark Dayton and rates go into effect on Jan. 1 Republican Speaker Kurt The increase followed an Daudt failed to agree on a announcement this summer $312 million deal to pay down that Blue Cross Blue Shield premiums by 25 percent. This left the individual market would have been a short-term because they were losing Bob Vogel fix for 2017 only. Now an estimoney. The result is about mated 121,000 Minnesotans, 100,000 people need to find a new who do not qualify for federal tax credplan. While 20,000 of these individuals its, will see the rate increases in 2017, were signed up through MNSure, reported the Mankato Free Press.

80,000 more would be navigating the It’s likely that relief for health care online system reported Mankato Free premiums will be addressed when the Press.

Legislature convenes on Jan. 3, but it Sen. Gary Dahms, R-Redwood Falls, will delay assistance. raised the issue of access to care in Property tax credit rural areas. For instance, Medica filled Republicans and Democrats pledged up quickly on the MNSure Exchange their support for the 40 percent propthis fall so the next option for a farm erty tax credit on school capital referenfamily in Redwood County was San- dums that would give farmers some tax ford Health. The nearest clinic is 70 relief. (See story on pg. 12.) This measmiles away and the hospital is 100- ure is part of tax cut package that plus miles away in Sioux Falls, S.D. passed the Legislature, but went unsigned by Dayton after the 2016 Legislature.

Senator-elect Rich Draheim, R-

Washington Township, cited the $34 million Cleveland schools referendum that failed in November. With little commercial and industrial taxes in the district, the referendum was quite expensive for the average farmer, said Draheim.

“I think property taxes are regressive. They penalize people who work hard and save money,” said Draheim.

Draheim said that we need to spend less. He also stated that we need to look at why health care costs so much.

Rep. Paul Torkelson, R-Hanska, expressed his support for the tax credit as well, but did have one reservation.

“This new relief is going to add another layer of complication,” he said.

Clark Johnson, DFL-St. Peter, and Jack Considine, DFL-Mankato, also support the tax credit, but Considine noted that he was sorry to see the credit reduced from 50 percent to 40 percent.

Tom Warmka, farmer and Faribault County commissioner, told the panel, “Get your work done.” ❖

Local Foods College online Local Foods College is a webinar series of eight sessions, meeting at 6 p.m. on Tuesdays from Jan. 17 to March 7 online. The webinar format is handy for many participants to access from home or office locations. There are also public sites that offer opportunity to network with your neighbors.

Session topics include: soil health; disease management in a high tunnel; harvest handbook; sheep, goats and fiber; poultry on the homestead; cottage food law simplified; accessing capital for growing your commerical scale production; and seed saving.

Local Foods College is free, but registration is required to provide you access to the Moodle classroom. Register at bit.ly/FoodCollege Local Foods College is sponsored by the University of Minnesota Extension and the Statewide Health Improvement Program.

Visit localfoods.umn.edu/college for more information. This page includes a link to the registration form. The page will also post and update public viewing sites as they become available.

This article was submitted by the University of Minnesota Extension. ❖

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Farm Bureau lobbyist sees China as ‘sore thumb’ in ag

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have big battles — big questions such as, ‘Do you plug in adjusted gross income figures? Do you put in a payment limit? Do you cut back on the premium subsidy?’ These are just a few of the big issues we’ll be faced with.”

Thatcher wasn’t suggesting who might be the next Secretary of Agriculture. She said, “I have no clue. You see a few names on the list that are selfpromoting themselves. Other names are simply recommendations of close friends and advisories already on the inside. We got Secretary Vilsack eight years ago, yet his name didn’t float early at all. So it could easily be someone not even mentioned at this stage.”

Roots Thatcher grew up on a 500-acre southern Iowa beef, hay and corn farm. She is a graduate of Iowa State University with degrees in animal science and agricultural economics. She still finds time to manage her Wayne County farm which also includes a 40-cow/calf operation. On her 2016 crop year, she shared similar comments of Midwest farmers.

“I did have record yields. Unfortunately, not record prices; but those extra bushels somewhat compensated for the challenges of break-even in this current farm economy,” she said. “As you might imagine, I farm from D.C. mostly via lots of phone calls with the good staff running my place. So there’s no dirt under my fingernails, but it’s better than not having a farm.” ❖

THE LAND, DECEMBER 23, 2016

knows rural America very much helped

By DICK HAGEN get him elected. Are we going to win The Land Staff Writer every battle? No, but I think we’ll win BLOOMINGTON, Minn. — With some important battles. If we can have President-elect Donald Trump emphatiWOTUS eliminated by February, that cally stating he is against the proposed will be a very significant win for rural Trans-Pacific Partnership, is world trade America.” likely to be an ongoing challenge for U.S. agriculture?

Waters of the U.S. is a proposed rule that expands the U.S. Environmental With lots of maybes still unfolding in Protection Agency and the U.S. Army the early stages of this new administraCorps of Engineers’ authority over water tion, Mary Kay Thatcher, lobbyist for the regulations. Since this interview was American Farm Bureau Federation for conducted, Trump selected Oklahoma 28 years, suggested China will likely Mary Kay Thatcher Attorney General Scott Pruitt to head continue to be the primary “sore thumb” the EPA. Pruitt led a number of states in of U.S. agricultural trade — regardless of filing lawsuits against the EPA challenging the Trump’s sentiments.

When interviewed at the Minnesota State Farm WOTUS rule.

Declining to comment as to which state has the Bureau Conference in November, Thatcher commented, “As China’s economy has moved its lower stronger Farm Bureau programs, Thatcher instead income population into the middle class, their food said, “The ability of farmers to engage with elected habits have changed. They want more protein; more officials and non-farming consumers keeps getting processed, high value foods; more variety in their better and better. I put that effort very much behind menus. And this has definitely influenced how China the Waters of U.S. discussions. We’re very unified — not only within Farm Bureau, but collectively with deals in foreign trade.

“I think China reasons that if they can dominate all farmers. We’ve got to keep that happening for trade, they can dominate foreign policy and lots of various reasons such as tax reform, Obamacare, the other things. To me, China will continue one of the Farm Bill, immigration … we’ve got to hang together bigger thorns that U.S. agriculture needs to deal and really be active.”

Thatcher credits younger farmers for their efforts with. And this is a major reason we need to move TPP forward instead of letting it languish. Because through social media. “They know how it’s done,” she said. “They spend hours getting their messages if we don’t, the Chinese will step in!”

China is not part of the TPP. So is Japan quietly out to the public. Yes, part of this stepped-up comsitting on the sidelines waiting to see what the mentary is because farm prices aren’t good. That issue is making farmers of all ages more willing to United States will decide? tell their story.”

“I think there is a lot of that happening, not just Thatcher added that during the creation of the with Japan, but perhaps each of the other 11 coun2014 Farm Bill, Farm Bureau struggled to get tries that are part of this TPP proposal. But now farmer input, she said. that the U.S. has failed to move in this lame duck “Prices were good and they had other things to session, I think we’ll be seeing various countries working on bilateral and multi-lateral deals without focus on. The silver lining inside the beltway perspective is getting better prices for farmers,” us.”

Reflecting on why the Clinton campaign team Thatcher said. “As a lobbyist, I am concerned that seemingly ignored the white working class of the federal crop insurance will be in the bull’s eye of American electorate, Thatcher countered, “I think many members of Congress this next session. We’ll they were tuned in. But in general, you don’t have Democratic presidential candidates spending much time in rural America simply because you don’t have a lot of avid Democrats in rural America. You saw Mr. Obama with a fairly strong rural America team.

I don’t think you saw that with Hillary Clinton.

Please turn in your 2017 Subscription “Yet when you think about rural America, you cerCards. Your subscription cards make it tainly think of states like Michigan, Ohio and Wisconsin. However, these are also states with large possible for us to publish The Land. populations and manufacturing industries. Those • Dig out your subscription card from your people often look at foreign trade as a way to lose last issue, fill it out and mail it in the jobs instead of gaining more work. It became an postage paid envelope provided. interesting balancing act.”

• Call (800) 657-4665 and we will mail you Optimism a new one.

Thatcher is optimistic that the collective powers of Farm Bureau, Farmers Union, National Corn Grow• Visit www.ThelandOnline.com and ers and other major farm groups can influence the choose The Land subscription form button thinking of Trump on agricultural issues important on the top of the home page. Fill it out, to farmers. “I think he will be willing to listen. I print it out and mail it in. think he does need to look at rural America. He

23

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THE LAND, DECEMBER 23, 2016

24

December 23, 2016 Happy Holidays from all of us at THE LAND!

Announcements

010 Real Estate

020 Real Estate

ADVERTISING NOTICE: Please check your ad the first week it runs. We make every effort to avoid errors by checking all copy, but sometimes errors are missed. Therefore, we ask that you review your ad for correctness. If you find a Prime Polk County Farmland For Sale: 130 acres, mistake, please call (507) 120 tillable, to be sold as 345-4523 immediately so one parcel. Location is 7 mi that the error can be cornorth of Amery, WI. Proxrected. We regret that we imity to nearby cash grain cannot be responsible for markets. Offered by the more than one week's infamily from an estate, first sertion if the error is not time on the market for gencalled to our attention. We erations. Request serious cannot be liable for an inquiries only. Priced at amount greater than the fair market value based on cost of the ad. THE LAND comparables applies. Call has the right to edit, reject 877-204-5032 to leave contact or properly classify any ad. info Each classified line ad is separately copyrighted to THE LAND. Reproduction without permission is strictly prohibited.

Thank you for reading The Land!

020

LAND FOR SALE: 15 acres, Waushara Co. WI. Between Watoma & Neshkoro WI. On Czech Ave & Banaman Trl. Buildable or ag. $49,000. Call (847)707-9522 Sell your land or real estate in 30 days for 0% commission. Call Ray 507-339-1272

Real Estate Wanted

021

Deer & Turkey Hunting Need land to hunt deer and turkey on. Single hunter looking for land to hunt on in Blue Earth or surrounding counties. Respectful of your land and crops. Call or email me at breedlovevstar@yahoo.com 507-380-0014 Thank you for your consideration Daniel Caballero

Holiday Deadline for January 6, 2017 issue: Display ads: Wednesday, Dec. 28; Classified line ads: Thursday, Dec. 29 To place an ad or for more information call 507-345-4523

Real Estate Wanted

021 Bins & Buildings

033

035 Farm Implements

035

800 gallon Mueller tank for FOR SALE: NH 195 spreadstorage. (507)523-3305 or er w/ end gate, very good 507-450-6115 shape. (507)523-3305 FOR SALE: 2014 Demco 650 grain cart, red & black, FOR SALE: Whoule 7300 & nice, $15,500; Demco 450 9500 gal. Tanks, Krohne gravity box, $9,500. 320-987flow meter, disk incorpora3177 tors, $28,000 - $35,000. 320582-1051 FOR SALE: Farm king 960 8', 2 auger snow blower, Hydrostatic & Hydraulic Reused once, $3,400; Farmall pair Repair-TroubleshootSMTA, IHWF, good tires, ing Sales-Design Custom $3,500; JD 3020 D tractor hydraulic hose-making up JDWF, 3pt, fenders, $5,900; to 2â&#x20AC;? Service calls made.

New Holland BR 780 baler, STOEN'S Hydrostatic Serextra sweep, hyd pick-up, vice 16084 State Hwy 29 N net & twine wrap, $7,450; Glenwood, MN 56334 320JD 845 12X30 flat fold culti634-4360 vator, w/ shields, $1,750 320769-2756 FOR SALE: GEHL 170 grinder, $14,500. 320-9873108 FOR SALE: Loftness 22' pull-type stalk chopper; IH 886 new TA, clutch, fluids, front tires, lights, cab, Case IH 1000-series cornpaint, exc. cond. $12,500. IH head 12-22; IH 800 plate 350 Diesel, TA, PS, fast planter 12-22; Westendorf hitch, good tin/rubber/runloader TA-229, like new. ner $3,500. Trade for gas 320-314-2534 loader tractor. 218-428-6525 FOR SALE: New Mandako roller, 40' roller, $28,500; Mandako 40 Ft Land Roller 20' inline roller, $15,500, day (42x5/8â&#x20AC;? Rollers) Heavier time. 320-987-3177 Frame & Bearings 3â&#x20AC;?

Shafts. J Deere 5 Shk #2700 FOR SALE: NH 195 spreadw/ Rear Hyd Leveler. Both er, w/hydraulic gate. (507) Real Good. 319-347-6676 523-3305 or 507-450-6115

++++++++++++ +NEW WINTER HOURS - STARTING+ + Wednesday, November 9, 2016 + + + + + + Antiques/HH/Farm Misc. ....3PM + + Hay & Straw......................4 PM + + Livestock...........................5 PM + + â&#x20AC;&#x153;Please cut this ad & save! We will be + + on this selling schedule until Spring of 2017!â&#x20AC;? + + Brad Thelen doing business @ the + + + + HOTOVEC AUCTION CTR., INC. + + N. HWY 15, HUTCHINSON, MN + + 320-266-0724 or 320-587-3347 + ++++++++++++

AUCTION

WANTED: Land to Rent In South Central MN.

320-522-1513 320-522-0513

LOADER TRACTORS â&#x20AC;&#x2DC;13 JD 6170R, Cab, IVT trans, MFWD, 859 hrs., w/ H380 loader, 3 pt., 540/1000 PTO, 18.4x46

â&#x20AC;&#x2DC;09 NH 6070, Bi-directional, 3543 hrs., cab air, w/ NH 84lb loader, 3 pt., 540/1000 PTO, 18.4x34

TRACK TRACTORS

3 pt., PTO, front wgts., ......................... Very Clean! ................................................................. $79,000

4WD TRACTORS â&#x20AC;&#x2DC;13 JD 9460R, 1377 hrs., 1000 PTO, 3 pt. hitch, 5 hyd. valves, Hi-Flow, 620x42â&#x20AC;? tires

â&#x20AC;&#x2DC;12 JD 9410R, 675 hrs., 3 pt. hitch, 1000 PTO, 5 hyd., big pump, 480x50â&#x20AC;? tires & duals ............................................................... $219,000 â&#x20AC;&#x2DC;12 JD 9410R, 1259 hrs., 1000 PTO, 4 hyd., HID lights, 520x46â&#x20AC;? tires & duals ................. $172,500 â&#x20AC;&#x2DC;12 CIH 400HD, 366 hrs., 1000 PTO, 6 hyd., big pump, 480x50â&#x20AC;? tires & duals ................ $185,000 â&#x20AC;&#x2DC;12 CIH 400HD, 320 hrs., 4 hyd., big pump, 520x46â&#x20AC;? tires & duals ............................ $169,000 â&#x20AC;&#x2DC;02 CIH 425, 3465 hrs., 24-spd. manual,

ROW CROP TRACTORS

3 hyd., 18.4x46â&#x20AC;? tires & duals ................. $99,000 â&#x20AC;&#x2DC;08 JD 7830, MFWD, 4117 hrs., 540/1000 PTO, 3 pt., 380x50â&#x20AC;? tires & duals ........................ $81,000

Ask Your Auctioneer to Place Your Auction in The Land!

0/ "OX s -ANKATO -.

0HONE OR &AX 7EBSITE WWW 4HE,AND/NLINE COM s E MAIL THELAND 4HE,AND/NLINE COM

â&#x20AC;&#x2DC;03 CIH 1020, 30â&#x20AC;&#x2122; flex.................................... $6,000 â&#x20AC;&#x2DC;97 JD 930 30â&#x20AC;&#x2122; flex head w/ fill finger auger .... $6,900 â&#x20AC;&#x2DC;05 JD 643, 6R30â&#x20AC;?, low tin ............................ $6,000 â&#x20AC;&#x2DC;05 Geringhoff 6R30â&#x20AC;? chopping cornhead ..... $22,500 â&#x20AC;&#x2DC;97 JD 930 30â&#x20AC;&#x2122; flex head w/ full finger auger ... $6,900

COMBINES â&#x20AC;&#x2DC;13 JD 660, 1180 eng/892 sep hrs., Premium Cab, cm, HID lights, high torque USD chopper, 520x38â&#x20AC;? tires + duals ........................... $157,500 â&#x20AC;&#x2DC;00 JD 9650TS, 3611 eng./2645 sep. hrs., chopper, 20.8x38â&#x20AC;? duals......................................... $57,000 â&#x20AC;&#x2DC;09 CIH 8120, 2145 eng./1566 sep. hrs., Pro 600 Monitor, yield + moisture monitor, rock trap, tracker, chopper 900 x 32â&#x20AC;? singleâ&#x20AC;&#x2122; drive tires ................................................................. $99,000

â&#x20AC;&#x2DC;13 JD 6170R, cab, IVT trans., 540/1000 PTO, 480x46â&#x20AC;? tires & duals, (has JD H380 loader w/ joystick) ................................................. $125,000 â&#x20AC;&#x2DC;12 CIH 290, 434 hrs., PT, 3 pt., 540/1000 PTO, 5 hyd., big pump, front duals, 480x50â&#x20AC;? rear duals .............................................. $139,000 â&#x20AC;&#x2DC;12 CIH 260, 1784 hrs., Deluxe cab, 19-spd. PS,

rock trap, chopper, 520x42â&#x20AC;? duals ............................................................... $179,000 â&#x20AC;&#x2DC;12 CIH 7130, 1839 eng./1355 sep. hrs., tracker, chopper, 520x42â&#x20AC;? duals ........................ $110,000 â&#x20AC;&#x2DC;11 CIH 7120, 871 eng./732 sep. hrs., rock trap, chopper, 520x42â&#x20AC;? duals........ $150,000 â&#x20AC;&#x2DC;12 CIH 5130, 4WD, 776 eng./578 sep. hrs., rock trap, chopper, lateral tilt, 620x42â&#x20AC;? tires .............................................................. $139,000 â&#x20AC;&#x2DC;09 NH CR9060, 2400 eng./1800 sep. hrs., tracker, chopper, 520x42â&#x20AC;? duals .......................... $72,500 â&#x20AC;&#x2DC;04 NH CR970, 3138 eng./2186 sep. hrs., tracker, chopper, chaff spreader, air compressor, 520x42â&#x20AC;? tires & duals .............................. $55,000 â&#x20AC;&#x2DC;96 CIH 2188, 4WD, tracker, chopper, bin ext.,

susp. front axle, 3 pt., 4 hyd., Hi-Flow, 1000

3520 eng/2546 sep.hrs., 520X 42â&#x20AC;? tires & duals

PTO, 480x50â&#x20AC;? duals .............................. $110,000

................................................................. $36,000

LARSON IMPLEMENTS 5 miles east of Cambridge, MN on Hwy. 95 763-689-1179

Look at our Web site for pictures & more listings www.larsonimplements.com

â&#x20AC;&#x153;Where Farm and Family Meetâ&#x20AC;?

Deadlines are 1 week prior to publication with Holiday deadlines 1 day earlier ** Indicates Early Deadline

COMBINE HEADS â&#x20AC;&#x2DC;08 CIH 3408 8R30â&#x20AC;? cornhead.................... $19,500

4 hyd., 710x38â&#x20AC;? tires & duals .................. $89,000 â&#x20AC;&#x2DC;12 CIH 7230, 605 eng./434 sep. hrs., Lux. cab,

1000 PTO, HID lights, front wts, fender .. $99,000

Northern MN January 6, 2017** January 20, 2017 February 3, 2017 February 17, 2017 March 3, 2017

480x46â&#x20AC;? duals, front duals ...................... $65,000 â&#x20AC;&#x2DC;03 CIH MX210, 5550 hrs., 3 pt., 1000 PTO,

............................................................... $215,000 â&#x20AC;&#x2DC;10 NH 98D 8R30â&#x20AC;? cornhead .......................$20,000

â&#x20AC;&#x2DC;10 JD 8270R, 3888 hrs., 3 pt., 1000 PTO,

Southern MNNorthern IA December 30** January 13, 2017 January 27, 2017 February 10, 2017

duals ...................................................... $119,000

tires .......................................................... $65,000 4 hyd., 380x46â&#x20AC;? tires & duals .................. $59,000 â&#x20AC;&#x2DC;12 Kubota M110, Cab, MFWD, 240 hrs., w/Kubota â&#x20AC;&#x2DC;11 NH T8.300, 1644 hrs., Lux. cab, HID LA1953 loader, 3 pt., 540/1000 PTO, 18.4x30 lights, 3 pt., 1000 PTO, 4 hyd. valves, tires .......................................................... $55,000 Auto Steer Complete, 520x46â&#x20AC;? duals ..... $89,000 Massey Ferguson 35 Deluxe, Wide front, power â&#x20AC;&#x2DC;12 Kubota M110, MFWD, 240 hrs., 3 pt., steering, Paulson loader, w/the bauer ...... $4,000 PTO, loader w/8â&#x20AC;&#x2122; bucket.......................... $55,000

â&#x20AC;&#x2DC;04 Cat. 765, 4602 hrs., 18â&#x20AC;? tracks, 120â&#x20AC;? spacing,

25

PTO, 4 hyd., big pump, 420x46â&#x20AC;? tires &

duals ...................................................... $125,000 â&#x20AC;&#x2DC;05 CIH MX255, 4282 hrs., 3 pt., 540/1000 PTO,

â&#x20AC;&#x2DC;11 Versatile 305, MFWD, 690 hrs., 4 hyd., 3 pt.,

If youâ&#x20AC;&#x2122;re having a Farm Auction, let other Farmers know it!

Upcoming Issues of THE LAND

â&#x20AC;&#x2DC;13 CIH 260, 577 hrs., PS, 3 pt., 540/1000

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20% DISCOUNT ON NEW FOR SALE: Alfalfa fescue Mandako Land Rollers-All mix, 3x3 squares, 2nd crop, Sizes Ends December 30-16 85 RFQ, 14.5 protein, 12.6 Can Deliver. Dealer 319moisture, 3rd crop bal347-6282 ayage individually wrapped squares, 116 RFQ, 21 pro- 430 electric feed cart w/ S/S floor, new apron, exc. cond. tein, 20 moisture, 4th crop low hrs, $2,000/OBO. 160 RFQ, 15.7 protein, 12.5 WANTED: Industrial air moisture. 507-261-3042 compressor to blow out irrigation lines. 608-539-2100 Bins & Buildings 033 9' Buhler Farm King blower, like new; Ford 3000 & ldr; FOR SALE: Brock 2 ring IH 490 24' disk; Gehl 3510 hopper bin w/ auger & moskid; (3) gravity wagons. tor, like new. 507-426-7019 Peterson Equipment New Ulm 507-276-6958 or 6957

Farm Implements

THE LAND, DECEMBER 23, 2016

WANTED: Land & farms. I Stormor Bins & EZ-Drys. have clients looking for 100% financing w/no liens dairy, & cash grain operaor red tape, call Steve at tions, as well as bare land Fairfax Ag for an appointparcels from 40-1000 acres. ment. 888-830-7757 Both for relocation & investments.

If you have Grain Handling Equip 034 even thought about selling contact: Paul Krueger, FOR SALE:Used grain bins, Farm & Land Specialist, floors unload systems, stiEdina Realty, SW Suburban rators, fans & heaters, aerOffice, 14198 Commerce ation fans, buying or sellAve NE, Prior Lake, MN ing, try me first and also 55372. call for very competitive paulkrueger@edinarealty.com contract rates!

Office (952)447-4700 hours 8am-5pm Monday â&#x20AC;&#x201C; Friday Saturday 9am - 12 noon or call 507-697-6133 Antiques & Collectibles 026 Ask for Gary FOR SALE: Snow bucket for JD 45 loader, re-conditioned Farm Implements 035 new cutting edge. 952-59413' tandem axle dump box, 9936 pull w/farm tractor. (507) 523-3305 or 507-450-6115 Hay & Forage Equip 031

“Where Farm and Family Meet”

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THE LAND, DECEMBER 23, 2016

26

Get a copy of our new book!

The Best of Back Roads features your favorite stories from the Back Roads series in The Land. It makes the perfect gift for people who are hard to buy for.

Look for the order form on page 14.

Thank you!

Farm Implements

035 Tractors

036 Tractors

036

27 THE LAND, DECEMBER 23, 2016

JD 6620 Hillside Titan II, '87 Ford 8210 4WD 130HP, JD 7200R, MFWD, only 321 hrs, rear tires 380/90R50, 3950 hrs. (507)523-3305 or 4450 hrs, L&R cab exit, IVT, HID lights pkg, 4 507-450-6115 $17,000. (608)269-3298 SCVs, 540/1000 PTO, front Schweiss 8' snowblower, wgts, active seat, buddy FOR SALE: '06 2210 BuhlerLoftness 8' snowblower, JD seat, front fenders, new Versatile 210HP, FWA, 3558 Donahue 28' trailer. cond, $130,000. 507-514-4910 hrs, 18spd PS, 4 remotes, Koestler Farm Equipment nice, field ready, 358/85R-34 507-399-3006 tires, duals, 480R/80R-46, NEW AND USED TRACTOR PARTS JD 10, 20, 30, 40, 50, $58,900. 507-327-6430 We buy 55, 50 Series & newer tracSalvage Equipment tors, AC-all models, Large FOR SALE: 1981 JD 4040, Parts Available Inventory, We ship! Mark cab, powershift, 18.4-38 Hammell Equip., Inc. Heitman Tractor Salvage tires, 6,750 hrs., good, clean (507)867-4910 715-673-4829 tractor. Call 507-456-4909 Tractors 036 FOR SALE: 2005 JD 8520T, Harvesting Equip 037 3600 hrs, 30” tracks, 3 pt, '11 JD 8235R, 1996 hrs, FWA, PTO, exc cond $99,900; 8' 1000 Bu KINZE #1040 Auger 16spd PS, GPS & Auto Lorenze snow blower, Track ready, exc cond, Cart w/ Tarp, Good Augers $1,595. 507-240-0294 $134,000. '06 JD 8430, 3317 & Tires Real Good. 24 Ft hrs, rear & front duals, ILS GREAT PLAINS Turbosusp, tires 90%, 16spd PS, FOR SALE: JD 520 1956, acMax (Hyd Turn Blades) tual hrs 4420, field ready.

GPS & Auto Track ready, Zero- 6 Deg On The Go, (507)450-6115 or (507)523exc cond, $132,000. 507-327Rental Unit. 319-349-6676 3305 6430 FOR SALE: JD 9650STS '99 JD 8300 MFWD Tractor, FOR combine, AHH, DAS, hopSALE: JD 8400, 20.8R42 rears w/ duals, per ext., GreenStar ready, MFWD, front & rear wts, 16.9R30 fronts, rubber 90%, thru JD shop yearly w/ ser11,000 hrs., 20.8 x 42 tires, big hyd pump, 4 hyd revice records, 18.4x42 duals, $38,000. 320-510-0468 motes, front wgts, 1000 2189 sep hrs, long auger, PTO, quick hitch, 7K hrs. FOR SALE: JD 8760 in very excellent condition, very Very nice, late model 8300 good condition, $35,000. 507nice, always shedded, tractor, $49,000. Call (507) 318-9168 $57,900. 320-359-2692 789-6049

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Harvesting Equip

THE LAND, DECEMBER 23, 2016

28

037 Harvesting Equip

037 Tillage Equip

039

Tillage Equip

039

www.DuncanTrailerslnc.com HANCOCK, MN Call: 320-212-5220 or 320-392-5361 • Will Consider Trades! •

FLATBEDS

DOUBLE DROPS '97 Wilson, 48/96, SX, AR, Alum. Floor, Alum. Crossmembers, 80% ‘99 XL Specialized Double Drop, T&B, Sandblasted & Painted ..........$7,000 48/102, 29’6” Well, New 255/225 RGN, Mechanical Detach RGN...............$17,500 ‘99 Transcraft, 48/102 SX, AR, Alum. Floor Combo, Alum. Crossmembers (10) Van & Reefer Trailers - On Hand, 48/102- 53/102, Water, HAY SIDES...with any Storage, or Over The Flat or Drop Deck Sales: $1,000 Road ...............................$2,500 to $3,500 HOPPERS

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END DUMP ‘11 Wabash, 42/66, AL, AR, AG Hopper, ‘97 Raven, 36’ Alum., AR, New Liner, 90% 11/24.5 Alum. Wheels, New T&B ..............................................$19,000 T&B ..............................................$18,500

“Where Farm and Family Meet”

Machinery Wanted

040

Feed Seed Hay

050 Dairy

055

Brent 1194 grain cart, on FOR SALE:Case IH 1083 FOR SALE: 30' Salford 570 FOR SALE: JD 2700, 5 shank WANTED: 10-12 ton protein ALFALFA, MIXED hay, WANTED TO BUY: Dairy ripper, 2004 model, nice RTS, excellent condition. bin. (507)523-3305 or 507-450cornhead, very nice conditracks. (608)548-2040 grass hay, & feed grade heifers and cows. 320-235condition, $16,500. 507-227507-381-5781 6115 tion, $3,450. 612-701-3186 wheat straw.

Medium 2664 2602 FOR SALE: 9600 JD comsquares or round bales. Debine, stored inside, through Tillage Equip livery available.

LeRoy 039 GREAT PLAINS 36 Ft #6536 Wanted 042 shop every year, duals, 056 Ose, call or text: 218-689- Cattle One Pass Finisher w/ 5 Bar Machinery Wanted 040 Yield Monitor that makes 6675 HR Drag (2005).

Glencoe 13 WANTED: JD 1755 vacuum 30 Ft GREAT PLAINS Turmap, $28,000. 507-532-2094 FOR SALE OR LEASE Shank Older Soil Saver All kinds of New & Used 6 row dry fertilizer planter, SEED bo-Till, Blades 1/2” Wear CORN SAVINGS! REGISTERED BLACK (Stretch Model) (Good NewerJD chopper, 6 row; from New, Real Good. farm equipment – disc chisGreat pricing on leading MC 820 corn dryer, 260 hrs, ANGUS Bulls, 2 year old & Blades). Both Real Good.

(2) 3 ft yellow Angle Iron 10X71 Westfield MK100-71 els, field cults, planters, National conventional & heat & cool or full heat. yearlings; bred heifers, 319-347-2349 Can Deliver extension drag wings. 507Auger w/ Low Hopper/Powsoil finishers, cornheads, technology hybrids. ComStainless steel screens, sincalving ease, club calves & 720-1186 er Mover Good Cond. 319feed mills, discs, balers, bine with “KLEENACRES” gle phase LP, excellent. balance performance. Al 347-6138 haybines, etc. 507-438-9782 (608)548-2040 solutions program, mainwww.thelandonline.com sired. In herd improvement tain yields & save $100 to program. J.W. Riverview $150 per acre input costs.

Angus Farm Glencoe, MN www.kleenacres.com 55336 Conklin Dealer 320or catalog 320-237-7667 864-4625

DROP DECKS ‘97 Wabash, 53/102, SX, AR, Alum. Floor, 255/225, Clean ...........................$16,500 Engineered 5’ Beaver Kit: Includes: Paint, LED, Lights & All Electrical .........................................$5,250 Installed ...................................................$3,250 Kit

10% Discount on Dec. and Jan. Sales

Livestock

054

FOR SALE: Black Angus bulls also Hamp, York, & Hamp/Duroc boars & gilts.

320-598-3790

Registered Texas Longhorn breeding stock, cows, heifers or roping stock, top blood lines. 507-235-3467

29 THE LAND, DECEMBER 23, 2016

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“Where Farm and Family Meet”

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THE LAND, DECEMBER 23, 2016

30

Cattle

056 Livestock Equip

075

Recreational Vehicles

085

Miscellaneous

090

PLEASE DON’T FORGET to mail in yur 2017 subscriber card for The Land.

They were inserted into The Land on Dec. 2 & 9.

If you don’t have it please find it online at www.thelandonline.com and print it out or call us at 507-345-4523 and we’ll send you another one. Please fill it in, sign & date it and mail it with your payment today.

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WANT TO BUY: Butcher FOR SALE: Cattle squeeze FOR SALE: '04 Arctic Cat PARMA DRAINAGE chute w/ automatic head cows, bulls, fats & walkable PUMPS New pumps & Mountain Cat 900EFI, 159 gate, palpation cage & head cripples; also horses, track, 1 1/2” lugs, 1595 parts on hand. Call Mintable. Phone 320-226-3837 sheep & goats. 320-235-2664 miles, $3,500. '02 Arctic Cat nesota's largest distributor Mountain Cat 800EFI, 144 HJ Olson & Company 320track, 2” lugs, 3997 miles, 974-8990 Cell – 320-212-5336 Horse 057 Industrial & Const.

083 $3,000. 507-210-1706 Marg Horse Company REINKE IRRIGATION Buying horses of all kinds.

Miscellaneous 090 Sales & Service Please call (715) 896-2213 New & Used Cash paid for antique Harley For your irrigation needs Swine 065 1997 Kenworth T-600 430/470 Davidson, Indian or other 888-830-7757 or 507-766-9590 motorcycles & related Detroit, super 10 trans, 373 Compart's total program parts from 1900 thru 1970. rear, good cond, WANT MORE READERS features superior boars & Any condition. Midwest col$25,000/OBO. (701) 866-6753 TO SEE YOUR AD?? open gilts documented by lector will pick up anyExpand your coverage area!

BLUP technology. Duroc, where. Phone 309-645-4623 The Land has teamed up York, Landrace & F1 lines. Trucks & Trailers 084 with Farm News, and The Terminal boars offer leanOne call does it all!

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354,105 Miles, Super SinThe Land, Farm News, have the option of placing it All are stress free & PRRS gles, includes Roof DeflecAND The Country Today. in these papers as well. free. Semen also available tor, $28,500. 715-234-1993 Call The Land for more More readers = better rethrough Elite Genes A.I. info @ 507-345-4523 • 800-657sults! Call The Land for Make 'em Grow! Comparts 4665. more information. 507-345Boar Store, INC. Toll Free: FOR SALE: '98 Volvo VNL64T, Detroit 60 Series, 4523 • 800-657-4665 877-441-2627 RANGER PUMP CO. 14L, 430HP, Rockwell Custom Manufacturer of FOR SALE: Yorkshire, Winpower Sales & Service 10spd, A/R, dual fuel tanks, Water Lift Pumps & Hampshire, Duroc Reliable Power Solutions 75% drive, new air bags, for field drainage Hamp/Duroc boars, also Since 1925 PTO & automat185” wheelbase. 320-583-5324 Sales & Service gilts. Excellent selection. ic Emergency Electric 507-984-2025 or 406-314-0334 Raised outside. Exc herd Generators. New & Used Shop online at www.rangerpumpco.com health. No PRSS. Delivery Rich Opsata-Distributor www.thelandonline.com avail. 320-568-2225 800-343-9376

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This week’s Back Roads is the work of The Land Correspondent Renae B. Vander Schaaf

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THE LAND, DECEMBER 23, 2016

32

Celebrating Christmas D

ecember is a time when Maurice, Iowa, rolls out the welcome mat in a big way. Many homes are decorated in this town of 275 residents. But the highlight is the Traveling Nativity hosted by the First Reformed Church.

This year, the 21st Live Traveling Nativity was held on Dec. 3 and 4, from 5:30 to 8:30 p.m. More than 200 people volunteer for this event. They are primarily senior high school youth group students who are aided by younger and older church members.

“The purpose is manifold, all donations go towards the Senior High Youth Group and their summer mission/conference trip,” said Jon Eveland, youth pastor of the First Reformed Church. “It is an outreach to the community, and a Christmas tradition for many families and groups. Most importantly, it highlights the story of Christ’s birth and possibly gives a glimpse into what it might have been like 2,000 years ago.”

The event begins at the church, where guests take part in the census, registering the number in their party, before proceeding through the church to a fellowship hall to enjoy a sweet treat and hot cider or chocolate.

Groups, 25 at a time, are led down the hall decorated to look like a city at the time of Jesus’ birth.

Outside, horse-drawn wagons are waiting and ready to begin the journey. In the quiet, a narrator begins to read the Christmas story from Luke, Chapter 2.

Snow was falling on Saturday, adding the perfect ambiance for the candlelit ride. But the peaceful ride is soon broken by angry, loud soldiers demanding money. A hidden money bag is turned over before the clatter of horse hooves are heard again on the street.

The night is dark until the wagon arrives at one of the stops, then spotlights shine on the Prophet Isaiah, or angels telling the shepherds. Through the falling snow flakes, Joseph can be seen leading a donkey with Mary riding. Somehow, watching this story progress makes the hardships of their journey more real.

Even though the story is familiar, disappointment is felt when the inn keeper motions that there was no room. The wagon ride continues again in the cold and dark of night. Until suddenly there appears an angel in the sky. A bright light shows Joseph, Mary and the babe lying in the manger surrounded by shepherds and the wise men worshiping the babe.

Christmas carols, such as “Holy Night, Silent Night” or “Joy To The World” were sung on the journey back to the church. It truly was a blessed experience.

According to the census, 2,174 guests experienced the live nativity and heard the Christmas story.

Mark your calendars for 2018, as this event occurs every other year on the first weekend of December. ❖

“Where Farm and Family Meet”

Maurice, Iowa

Do you have a Back Roads story suggestion? E-mail editor@TheLandOnline.com or write to Editor, The Land, P.O. Box 3169, Mankato, MN 56002.

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December 23, 2016

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MN Ag Expo Tentative Schedule of Events

December 23, 2016 - Page 3

Wednesday, January 25, 2017 8:00am 8:00am 9:00am 10:00am

– – – –

10:45am – 11:00am 12:00pm 12:00pm 12:30pm 1:00pm 1:30pm

– –

2:30pm 2:45pm 3:00pm 4:00pm 5:30pm 7:00pm

– – – –

– – –

–

5:30pm 10:30am 12:00pm 10:30am

Registration Open Exhibitor Set Up MCGA Delegate Session & Annual Meeting Pluto Legal Session Lisa Pluto: Farm and Business Succession Planning 11:15am Speaker Session MDA Representative: Keep It On Your Side Of The Fence. Dealing With Today’s Regulations 4:00pm Tradeshow Open 4:00pm MCGA Silent Fundraising Auction Lunch 1:00pm Variety Plot Meeting 1:30pm Researcher Updates 2:30pm Keynote Panel: The Economic Impact of Mergers in Agriculture Moderator: Phil Kunkel Panelists: Brian Buhr, Steve Koep & Bayer Representative 3:00pm Break 3:45pm Houston Engineering Session: Water Restoration and Protection Strategy (WRAPS) Process 3:30pm MCGA Membership Meeting 5:30pm MCGA Live Auction Dinner 11:00pm Beano & Vino Casino Night

Thursday, January 26, 2017 7:00am 7:00am 8:00am 8:00am 8:00am 9:30am 10:00am

– 3:00pm – 8:00am – 4:00pm

Registration Open MN Corn PAC Breakfast Tradeshow Open Breakfast Sandwiches – 11:00am MSGA Delegate Session & Annual Meeting – 10:00am Researcher Updates – 10:30am Gislason & Hunter Session Kaitlin Pals: Farming & Business Entities: Tips, Tricks & Pitfalls 11:30am – 12:30pm Markets Session Todd Hultman 12:30pm – 2:00pm MCGA & MSGA Lunch John Phipps 2:30pm – 3:30pm Keynote Speaker Jolene Brown: It’s a Jungle Out There!

3:30pm – 4:00pm Tradeshow Reception

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Save the Date!

January 25–26, 2017

Verizon Wireless Center | Mankato, MN Register today!

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MN Ag Expo Tentative Schedule of Events

December 23, 2016 - Page 3

Wednesday, January 25, 2017 8:00am 8:00am 9:00am 10:00am

– – – –

10:45am – 11:00am 12:00pm 12:00pm 12:30pm 1:00pm 1:30pm

– –

2:30pm 2:45pm 3:00pm 4:00pm 5:30pm 7:00pm

– – – –

– – –

–

5:30pm 10:30am 12:00pm 10:30am

Registration Open Exhibitor Set Up MCGA Delegate Session & Annual Meeting Pluto Legal Session Lisa Pluto: Farm and Business Succession Planning 11:15am Speaker Session MDA Representative: Keep It On Your Side Of The Fence. Dealing With Today’s Regulations 4:00pm Tradeshow Open 4:00pm MCGA Silent Fundraising Auction Lunch 1:00pm Variety Plot Meeting 1:30pm Researcher Updates 2:30pm Keynote Panel: The Economic Impact of Mergers in Agriculture Moderator: Phil Kunkel Panelists: Brian Buhr, Steve Koep & Bayer Representative 3:00pm Break 3:45pm Houston Engineering Session: Water Restoration and Protection Strategy (WRAPS) Process 3:30pm MCGA Membership Meeting 5:30pm MCGA Live Auction Dinner 11:00pm Beano & Vino Casino Night

Thursday, January 26, 2017 7:00am 7:00am 8:00am 8:00am 8:00am 9:30am 10:00am

– 3:00pm – 8:00am – 4:00pm

Registration Open MN Corn PAC Breakfast Tradeshow Open Breakfast Sandwiches – 11:00am MSGA Delegate Session & Annual Meeting – 10:00am Researcher Updates – 10:30am Gislason & Hunter Session Kaitlin Pals: Farming & Business Entities: Tips, Tricks & Pitfalls 11:30am – 12:30pm Markets Session Todd Hultman 12:30pm – 2:00pm MCGA & MSGA Lunch John Phipps 2:30pm – 3:30pm Keynote Speaker Jolene Brown: It’s a Jungle Out There!

3:30pm – 4:00pm Tradeshow Reception

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© 2016

December 23, 2016

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JANUARY 25–26

2017 VERIZON WIRELESS CENTER MANKATO, MN