Depressed Prices Ups Farmers Hedging

What do farmers need to keep in mind about the futures market?  Let Dave Leheman, CME Group Managing Director of Research and Product Development, tell you.  Here's a short video from an interview by Agriculture.com.

BASF Commitment to Research

What is BASF researching?  And what is the amount of effort and money they are putting in?  Markus Heldt, President, BASF Crop Protection recently answered those questions in an interview by Agriculture.com.

Harvest Tips

Wheat harvest has begun across the country.  Agriculture.com wanted to give you a few tips about harvesting and double planting soybeans.

The ideal moisture to harvest wheat is between 20% to 14%.  Below 14% you'll start to see yield loss.  Rain can also lower test weight and quality if below 14%.  Air drying the wheat will give you the best quality.  For long term storage make sure the wheat is dried to 12.5%.

If you notice head scab, be sure to increase your fan speed and use air to blow out the light, discolored kernels.  If you're going to store wheat with head scab, be sure to dry it quickly down to 13% to help stop the spread.  Below is a picture of wheat with head scab.

Remember that 17 kernels per square foot left behind the combine is about 1 bu./A.

Cut the wheat at 8 to 12 inches.  The taller stubble helps maintain soil moisture and encourages more height from the double crop soybeans.

If you are planning to store to stubble, keep in mind the fertilizer you are removing.  Wheat straw can remove 0.68 lbs of P205 per bushel and 2.03 lbs of K20 per bushel.  So 80 bushel wheat straw will remove 54.4 lbs of P205 and 162.4 lbs of K20.

If you are not planning on baling the straw, be sure to setup your combine to spread evenly across the field.  This will help even out double planting soy beans.

Double Planting Soybeans

When planting double crop soybeans select a medium to long season variety.  It normally takes soybeans 90 days to mature, so be sure to give yourself time for the average first frost.  

For the best double crop, make sure to plant 15" rows and narrow.  We want to encourage fast growth and a quick canopy.  Plant higher than normal populations, most double crop soybeans are planted in 15" rows at 200,000+ and 220,000+.

The most important thing to remember is to plant with good moisture.  Good seed to soil contact with moisture equals quick emergence and a higher yield.

Waiting for Proper Time to Irrigate

With seemingly abundant water supplies in the five Delta states of Arkansas, Louisiana, Mississippi, Missouri and Tennessee, many can't understand why anyone would ever have to irrigate.  Crop histories show that at some point in every season irrigation would pay dividends in the five state area.

Recently Jason Krutz, irrigation specialist with Mississippi State University, took an ag editor from Delta Farm Press on a tour to educate about water issues facing the Mississippi Delta.  He discussed how the use of flow meters, moisture sensors, and surge valves have helped farmers grow the same, and sometimes, more crops with less water.

Krutz and several members of the Mississippi Sustainable Water Resources Task Force stopped at a field operated by Tim Clements near Leleand, MS.  They demonstrated how the new technology could one day help farmers alter the current situation in which Delta farmers are removing more water from the alluvial aquifer than it is taking in.

Corn Looking to Rebound

After having a rough May and June grain futures are trying to rebound on the heels of last Friday's modest gains.  Heavy rain in the Northwest of the Corn Belt could end up doing more harm than good.  However, Kansas City futures show strength that could trigger a short covering rally.  Otherwise, the saying of "rain makes grain" is being put to the test.

Farm Futures Senior Editor Bryce Knorr talks about the market with Robert Hahn, Valley News Live TV, Fargo.

To hear the interview click here and scroll down to the bottom of the article to find the audio link.

Could Sorghum be the Next Bioenergy Crop?

Sweet and biomass sorghum and sweet sorghum juice sugars could be the next source of of bio fuel production.

A collaborative study was done and found a significant increase in ethanol production from a combination of sweet sorghum juice and corn mash.  Sorghum Checkoff made the announcement in collaboration with  the National Corn-To-Ethanol Research Center at Southern Illinois University-Edwardsville.

The study evaluated the levels of ethanol yields under conditions similar to what fuel ethanol industries use.  Sorghum sugar juice proved to be a successful replacement for processed water.  This could lead to an increase in corn ethanol production.

In a separate study, they found sweet and biomass sorghum would meet the need for next generation bio fuels that would environmentally sustainable.

Scientist from Purdue, the University of Nebraska-Lincoln, University of Illinois and Cornell University conducted the study.  In a report published in Biofuels, Bioproducts & Biorefining, researches believe sorghum can benefit from the rail system, grain elevators and corn ethanol processing facilities already in place.

"The Midwest is uniquely poised to get the biorefining going on cellulose," reports Nick Caprita, a Purdue professor of botany and plant pathology, in a interview with South West Farm Press.  "As we move to different fuels beyond ethanol, the ethanol plants of today are equipped to take advantage of new bioenergy crops."

Sorghum could become a larger part of a national bioenergy plan.  Cliff Weil, a Purdue professor of agronomy, said some types of sorghum would require fewer inputs and could be grown on marginal lands.

"In the near future, we need a feedstock that's not corn," Weil reported.  "Sweet and biomass sorghum meet all the criteria.  They use less nitrogen, grow well and grow where other things don't grow."

One of the many advantages of sorghum is there would be less of a need for nitrogen.  Corn has been bred to produce a maximum amount of seed requiring a lot of nitrogen.  But sorghum could be genetically developed in a way to maximize cellulose, minimizes seeds and inputs.

"If you're just producing biomass and not seed, you don't need as much nitrogen," Caprita said.

Issues with Mineral Rights

You're sitting at home and there's a knock at the door.  It's an energy company wanting to buy your mineral rights.  What do you do?

With all the new issues coming up regarding energy mineral rights is becoming a major and new issue for some farmers depending on where they're located.

Despite the monetary gain a farmer could make there are environmental issues at stake.  Particularly oil/gas drilling.  And even more so with hydraulic fracturing (fracking) method of extracting natural gas.

In an interview by Delta Farm Press, James Isonhood, Mississippi assistant attorney general said, "There is a lot of misinformation about this."

Making a mineral rights deal is a very serious business he said.

"If someone knocks on your door offering to buy mineral rights, the first thing you need to do is find a lawyer who is knowledgeable about oil and gas mineral rights.  Don't use just any lawyer - be sure it's one who has knowledge of and is experience in dealing with the complicated issues in mineral rights."

Just because you own the land doesn't mean you own the mineral rights.  The mineral rights may have been sold separately many years ago.

"If someone owns the mineral rights for your property - dominate estate - they have an absolute right to recover those minerals," Isonhood says.  "If you own the mineral rights and sell or lease them to a gas company, that gives them dominate estate."

Determining who owns the mineral rights can be difficult.  "You may have to go all the way back to the original patent in the 1800's," He says.  If the property is inherited then the land would go to the heirs.  If not, then it would go to who ever it was sold to.

If their are several heirs to the property then things can get really complicated.  Have you ever had to get numerous people to make a decision?  It's like herding cats sometimes.

Stanley D. Ingram, an attorney in Jackson, Miss said there is no such thing as a "standard" oil and gas lease form.  "If there is one thing certain about today's oil and gas lease, it is that it's uncertain.  Every oil and gas lease is unique, requiring the utmost of the lawyer's review and interpretation."

Pesticide Looneys and Conspiracy Theorist

Recently, Delta Farm Press wrote an article debunking many myths surrounding pesticides and GMO crops.  Of course they were ready for some responses from the community on this subject.  To see some of the responses click here.

Now think a little about what was said.  The only logical conclusion is that these people haven't done their research.  Instead of getting their facts and thinking about it logically, they responded with emotion.  Let's take a look at some of these responses and clear some things up.

One person wrote, "China, who purchases a large quantity of corn, has refused to purchase this year because of its GMO status.  Now farmers who have these crops are (affected) because they can't sell them.  The current battle now is should these seed companies be held liable because farmers can't sell them.  It all goes back to pesticides.  Research GMO and the companies that make them.  Your point of view is misinformed.  Do some research."

According to the USDA, which anyone can look up, overall US corn exports has increased by 300 million bushels since the beginning of the year.  And farmers don't trade their products with foreign nations.  Traders do that.

Then their's this.  "It would seem that ignoring the scientific evidence of the impact to humans from endocrine disrupting ag chemicals, that ignoring the scientific research showing the impact on humans from the cancers and immune diseases these and other ag chemicals cause and even ignoring the yield data, showing NO yield increases and in most cases LOWER yields from GMO crops you, the Penton Press Group continue to further the agenda of corporate chemical America.  It is sad ... and criminal.  But congratulations are in order:  you are now fully, legally, accomplices to their crime."

There is no evidence that if you use crop protection products properly that any of what this reader brings up would happen.  Also, to suggest standard practices in farming is somehow illegal is beyond the pale.

What would happen if we band GMO's and pesticides?  Sit back and think before reacting to that question.  Farmers work with a horribly tight deadline to feed the world.  To sustain humanity day upon day, year after year, decade after decade.  They have to deal with changing and unpredictable weather and now growing radicalism and regulation.

What would happen?  Millions would starve to death and global wars would break out.  What sounds more criminal to you?

A Boost in Productivity

Current technology makes working the farm much easier.  However, what happens when it breaks down.  Well, nothing really.  Most farmers just continue on.  There really isn't time for stopping everything when your in the middle of a field far from home.

In an interview with Brownfield Ag News central Illinois farmer Judi Graf said, "There are just so many that make life so much easier on the farm.  You've got the mapping and the auto-steer.  You can live without those, but it just wouldn't be as fun."

What happens when the technology breaks down?  "I just keep going," she says.

Zach Hunnicutt from central Nebraska says, "There are times where you get to the point where you wonder what kind of trade-off you're making when you lose production hours trying to fix things.  We usually just try to make sure things are working."

While most aspects of farming don't need technology.  Some things can't operate properly without it.  Adam Casner from Western Missouri says, "Our plant tractor is hydraulic driven so we do need a monitor to control rates.  But as far as the combine, we don't let that stop us.  Last fall, cutting beans, we had a yield sensor go out and we didn't have anything.  But we kept going."

It's like that old saying.  Technology is great.  As long as it works.

How Does Farmers National Manage My Farm?

Farmers National Company is the largest farm management company in the country.  What makes it so effective?  Let FNC tell you.



For more information on FNC's farm management division go to Farmers National's website.  Looking to buy land?  Go to Farmers National KC, email at info@farmersnationalkc.com Or call 913-837-4665.

BASF is Here to Help

Worried about your crops getting the proper amount of nitrogen?  BASF is working on that.  Coming in a few years, BASF is working on a new technology to help stabilize fertilizers and decrease its composition in the soil.  This will slow down the ammonia release in the soil and improve yields by 3% to 5%.

What else does BASF have cooking?

Water Management

They are working on distributing soil water to plants better.  This should save water costs by 50%.  They are working on getting this out a soon as possible.

Dicamba Tolerant Soybeans

This is a joint venture between BASF and Monsanto.  They plan for this to be lower in off target movement potential.  It may be a few years til this hits the target but they are thinking somewhere in the neighborhood of 2016.

Mobile Microscope

This should take all the guess work out of a crop disease.  All you have to do, with your mobile device, is take a picture of the infected crop.  The photo is then sent to a BASF library or an expert team for further analysis.  The photo is then categorized and saved to a GIS map.  The information of what you are dealing with is then sent back to you.

Seed Treatments

BASF is working on a polymer that coats the seed to accomplish three things.

1. Provide better seed coating stability.
2. Minimize dust-off of active ingredients.
3. Improve plantability and seed flow.

Looking to Buy or Sell Farmland?

Have you been thinking about getting into the farmland business?  You're probably asking yourself how do I go about doing it?  Or do you own some land and are looking to move it?  Look no further than Farmers National Company.  What can Farmers do for you?  I'll let them explain it.



I highly suggest using your local broker who's familiar in farmland real estate.  You can go to Farmers Real Estate Page to find one.  If you're in the states of Kansas or Missouri I can help you out.  Just go to Farmers National KC, email us at info@farmersnationalkc.com or call us at 913-837-0760.

Thinking of Selling Your Farm?

Have you hit that moment where you think it's time to sell your farm?  The biggest question is how do I choose my broker.  You need to be sure that broker isn't a broker who only sells homes.  Look for someone who specializes in farmland real estate.  Here are seven things you need to think about when it comes to picking your farmland realtor.

1. Your broker should provide to you a market analysis before you list it.  Make sure he or she has done their research before signing onto the dotted line.  You don't want to rely on guessing or rumors going around.
2. Along with being familiar with private treaties, the traditional form of real estate, your broker should also be experienced in auctions.  Auctions are a very big part of agriculture sales and if your broker is unfamiliar with it you're doing your self a disservice.
3. Your broker should be able to identify your lands strengths and weaknesses.  And then be able to properly promote your lands strengths and minimize its weaknesses.
4. Your broker needs to be on the cutting edge of technology along with the traditional methods.  Just putting up a sign and hoping doesn't cut it.
5. Your broker should be able to effectively negotiate with not just local farmers but operations, another broker or attorney, or a group of investors.  It's important to have a veteran broker who's been in the trenches in numerous types of deals.
6. Your broker should be informed of farm tax issues associated with selling a farm.  The worst case scenario for a seller is getting stuck in a nasty situation with taxes.  Make sure your broker can help you navigate and avoid these issues.
7. You broker should be well versed in 1031 exchanges.  If done right, selling your farm with a broker experienced in 1031 exchanges can save you a large chunk of change.

Choosing a informed farm broker is vitally important.  Not only will he or she help you get the highest price for you land, they will also make it smooth and painless.

Who do I suggest you use.  I highly suggest you do your own research for your local area.  However, if you're in the Kansas City area, I highly suggest using the Farmers National KC Team.  They almost only do agriculture sales and are backed by the Farmers National Company out of Omaha, NE.  That allows them to advertise your property more widely and effectively than any other broker in the area.  You can check out their website, email them at info@farmersnationalkc.com or call them at 913-837-0760.

What Does Farmers National Company Do?

What is Farmers National Company?  Well, that's a hard thing to say.  Basically, if it has anything to do with land or minerals, Farmers National Company can help you out.  Want more info?  Just watch this video.



To find out even more go to Farmers National Company.

Wheat Damage Likely

The freezing temperatures we saw mid-April have led many to believe the Wheat crop may have been damaged.

According to an interview on South West Farm Press, Jeff Edwards from Oklahoma State Extension who is a wheat specialist said, "Most of Oklahoma spent at least four hours below freezing last night and some areas spent an extended period of time below 28 degrees.  While temperatures in the wheat canopy might have remained slightly higher than reported air temperatures, they were still probably low enough to result in significant injury to wheat."

The one thing that may save it all is that most farmers weren't able to plant til late this season..

Generally, when wheat is flowering, freeze damage can occur when temperatures are as high as 32 degrees and stay there for more than two hours or more says Clark Neely, AgriLife Extension small grains and oil seeds specialist in College Station Texas.

There is no way of telling what kind of damage the crop has suffered for another week or two.

Neely said, "It really depends upon the weather after the freeze.  If it becomes hot and dry, we'll see symptoms a lot sooner.  If it stays cool, it'll take a little bit longer for those symptoms to show up."

"Kansas wheat may be damaged as well," said Jim Shroyer, Kansas State Research and Extension crop production specialist.  "Wheat in the jointing stage is most at risk."

The Return of El Nino?

As most of you know, predicting the weather is about like throwing a dart at a board.  No one knows for sure what's going to happen.  However, it's Spring!  And us in the agriculture industry can't help but watch the sky's and the evening weather forecast.

Farmers are making the preparations.  In some places the seeds are already down and in Southern Texas, the sorghum is already knee high is some places.

Generally the forecasts are calling for a continued drought in the West and Southwest.  However, the National Weather Service, independent weather forecasters and university weather scientists are hinting at a change.  What is that change?  El Nino!  This could be very welcome news for the Southwest including an increased chance of rain in the mountains.

 Right now the National Weather Climate Prediction Center is calling for a 50-50 chance of an El Nino this year.  An El Nino is a fluctuation in the water temperatures of the tropical Pacific Ocean.  An El Nino means warmer water and an La Nina means colder water.

What Does This Mean For Farmers?

It all depends on the location of your farm or ranch, influences from water temps, wind and an ever-shifting tropical jet stream.  If there is no El Nino the Southwest could be looking at something reminiscent of the dust bowl.  However, even if El Nino is late developing that could mean a wet snowy winter which would lead into a great 2015.  

The National Oceanic and Atmospheric Administration has been noticing some positive changes in the water temperatures in the Pacific.

Nothing is written in stone.  So like most folks I'm suspicious of long range weather forecasts.  But anytime there is a possibility to help us get out of this drought then I'm all for it.  Is El Nino returning?  I sure hope so.

Avoid Being Nickled and Dimed

Treament

Treatment is cheap.  But treatment upon treatment upon treatment isn't.  For example, let's say you need to spray lime on to your farm.  Let's go ahead and assume that $5 per acre.  Not bad.  Now, a couple weeks later you need some boron.  That's $5 per acre.  Ok fine.  Still not bad.  But let's say every few weeks you need to apply something else.  Before you know it you've spent $50,000 dollars on applications.

Soil Health

How do you avoid this problem?  Improve your soil health.  The problem we face is that we may have highly productive soils but along the way the soil becomes degraded.  The goal should be to improve and maintain the soils health without having to spend all that money on applications.

No-Till

The key is to do almost no-till crops.  The reason the phrase almost no-till is used is because you would have to do some form of irrigation.  You would have to dig a trench so the water can go from the crown of the field to the lower end.

Cover Crops

Cover crops will helps your soil from drying up as well.  They will reduce the stress on your plants.  Best of all, it will help maintain more moisture from infrequent Summer rains.  The trick is to make Mother Nature to work for you.

For more information on this go to Delta Farm Press

22 Facts About Herbicide Resistant Weeds

In an article on Agriculture.com the break down 22 things you need to know about herbicide resistant weeds.  I thought I would give you the quick rundown of what they found for you.  You can read the article if you want to go into more depth.

1. Nothing New is Coming
     Have you seen those ads for the new herbicides?  Don't listen to them.  There is nothing new on the market right now and nothing in the foreseeable future.  Don't fall for that ploy.

2. You Can't Diversify Enough
     Just like a financial profile, you must use different herbicides.  This needs to be in every farmers head.  If all farmers diversify there herbicide use, the likely hood of herbicide resistant weeds should decrease dramatically.

3. Pre's Don't Always Get Applied
     Apply early.  While this may seem like a no brainier, it doesn't always happen.  It's usually not an intentional mistake.  Lots of times we wait til the right moment to apply.  Sometimes that doesn't happen and the farmer moves on with other things and never comes back to it.  Make sure and stick with it.  It's worth it in the long haul.

4. Preemergence Benefits Are Limited
     Just because you applied in April doesn't mean you've completely killed the weed.  Some weeds have numerous germination periods.  Some as late as June.  So don't count on early applications to get you through the year.

5. Fall Applications Don't Always Work
     Don't think because you applied in the Fall you can skip the Spring application.  While those south of I-80 should do Fall applications, don't think it's all you need to do.

6. You Can't Use Liberty Like Roundup
     The best way to use Liberty is wait til the weed is 4 inches tall.  The reason you may want to use Liberty is it's good at fighting herbicide resistant weeds.  However, if you use it like you would Round Up you won't see any improvements.

7. Weed Control Via Cover Crops is Mixed
     Cover crops can kill off all those winter weeds that have grown.  However, by the time a second round in the late season starts to grow, most of those cover crops are gone.  So don't count on them solely.

8. Weeds Have a Weakness
     You just have to figure out what weed you're dealing with and exploit it.

9. Your Combine is a Giant Planter
     In a highly infested field your combine could act as a spreader.  If you have an issue it may be best to mow the field before harvest.

10. You Can Bury Waterhemp Seed
     They don't emerge from soil depth of 6 to 8 inches.

11. Palmer Amaranth Should Be Feared
     This weed will become resistant to what you're using at some point.  When that happens you must spray them postemergence before they reach 4 inches in height.  If not, you'll have a big problem on your hands.

12. Pigweeds are Tough to Distinguish
     Waterhemp is a leggy plant with lots of space in between its leaves.  Palmer Amaranth has a much thicker cover like a canopy.

13. Pigweeds can be Coed
     This means they have both male and female plants.  And, unfortunately, the male plant can pass its resistance on in the pollen.

14. Pigweed Hybrids are too Common
     Think about it this way.  A crossbreeding cattle produces better producing and a stronger calf.  Pigweeds are no different.

15. It's Harder to Kill Late Emerging Waterhemp
     Waterhemp that germinates later in the year tends to be more waxy and harder to kill.

16. Waterhemp Has One Perk in Your Favor
     Waterhemp is not has competitive has Pigweed.  It won't hurt your yields nearly as much.

17. Overlapping Residuals Give Better Control
     Hit those weeds at preemergence and post emergence.  Yes it costs more but it will better help in your control of weeds.

18. Resistant Weeds Can Wreak Rental Havoc
     As a land owner you must get control of weeds.  If you don't, no farmer will want to work your field.

19. Waterhemp is the Weed to Beat in the Midwest
     Palmer Amaranth is mostly a Southern plant.  Although it can be found as far North as Michigan sometimes.  So for the most part, especially in Missouri, Waterhemp is the weed you'll be fighting.

20. Herbicide Rates Can Not Be Sliced.
     All this will do is give the weeds a chance to become resistant.  Don't do it.

21. You'll See More Crop Injury
     You have to know your field.  Understand its pH level and know what herbicides may carryover from the last year.  Knowing this will help you to know when to plant on which field.

22. You May Need to Cultivate
     No you won't have to cultivate your whole field.  You may not have to do it at all.  Just if you have an area with a high infestation.

What To Do With Uninsured Crops

The non-insured crop disaster assistance program (NAP) is a federally funded program that helps producers reduce their risk when growing foods and fiber crops, specialty crops and crops for livestock feed.  These benefits are only available for crops for which the catastrophic level of crop insurance is not available.  Application for coverage must be filed by the applicable crops application closing date.

Production levels for all crops must be reported to the FSA no later than the acreage reporting date for the crop the following year.  FSA requires any production reported in a loss year be verifiable according to Agency specifications.  NAP losses must be reported within 15 days of the loss became apparent.

All applications for NAP payment must be signed by the subsequent crop year's acreage reporting date in order to be considered timely.  There are no late file provisions for NAP applications for payment.

Contact your local FSA County Office for more information on the NAP program and for NAP application closing dates for specific crops.

Farm Loan Program Changes

Changes to FSA regulations have resulted in changes to both the Direct and Guaranteed Loans available through FSA.  The new regulations have removed Guaranteed Operating term limits.  Previous and current guaranteed loan borrowers who were not eligible for further guaranteed loans due to the previous 15 year eligibility term limit may now be eligible for further guaranteed loans through their commercial lender.

Also, the interest rate was reduced on Direct Loans where FSA provides 50 percent or less on jointly financed purchases of real estate also called Direct Farm Ownership Participation Loans.  The interest rate is currently 2.5%, but is subject to change.