It’s easy to look around and see how agriculture impacts our world. This might be one of the reasons you chose a career in production agriculture. Even though you love your chosen career path, it doesn’t mean there aren’t challenges out there every day. The difference between the successful growers and the ones who aren’t as successful is how they approach the challenges that come their way.

The best way to solve a challenge is by looking at the opportunities behind the challenge and then taking control of your own destiny. The following are three very different challenges, but each with opportunities for you to succeed.

1. Shrinking profit margins

We will start with this one because it is a big one and most likely related either directly or indirectly to all your other challenges. This is a great opportunity to take back as much control as you can. We understand that you can’t control the prices of commodities directly, but you do have an opportunity to manage the price volatility.

The first step is to understand your breakeven cost of production. Do you know what it costs you to produce a bushel of the product you plan to grow next season? If not, today is the day to start figuring it out, as that knowledge will help you with this challenge and many future ones.
If you need help, consult a professional who can help you look at your individual scenario and figure out the numbers. Your lender might be a great place to start, but there are also other farm management resources you can look to such as the USDA Farm Services Agency (FSA). They have offices in every state and in many counties within those states.

Once you know your breakeven, take the appropriate marketing options when pricing hits that level or higher. There is not one correct answer for all growers, so look at a plan that will make you successful. If you need help, there are professionals who will help you or attend a class or meeting on crop marketing in your area. The Cooperative Extension Service has county offices throughout the country. Many offer these types of classes or can provide you with information about how to find them.

2. Determining What Crops to Grow Next Season

As you are looking at your own business situation, you will review the different crops for your area and your breakeven cost of production for each of these crops.

This will be a big step in helping you determine what the best crops will be for you to produce next season.

In addition, consider other variables related to that crop as you make your decision, including equipment needs, crop nutrition and crop protection inputs that will help you achieve your yield goals.

You will also want to look at historical yields for the crop to see what opportunities exist. A best practice is to not always count on higher yields to offset lower prices, but to always strive to get the best yield possible. With that in mind, make sure you keep fertility and crop protection as an important part of your plan.

Plan early so you have a chance to take advantage of any seasonal or pre-pay discounts that your retailer may offer on seed, fertilizer and crop protection products as it may be financially better for your operation if you are able to make commitments earlier and save money on input costs.

3. The New Herbicide and Trait Technologies

Sometimes bigger decisions within our industry create challenges for you as an individual grower. An example of one important challenge currently facing many soybean growers is the new herbicide and trait technologies that have been approved or are in the process of being approved for the 2017-growing season.

As with any changes, there are always a lot of unknowns out there. However, there is also the opportunity to achieve better things with the new opportunities that technology brings. Weed management is very important topic within the ag industry. Information on this topic is available regularly from a variety of resources including university researchers and industry organizations, large manufacturers and the USDA. Make sure you stay informed and use the knowledge from these resources to help you make decisions for your own operation.

If you are feeling overwhelmed or don’t understand all the requirements and procedures related to the new products and technologies, reach out to our team. We can help you use the information to help you achieve your own operational goals.

Original Source: Leaders of In-Furrow Technology, West Central

Growers are often called stewards of the land, and with the supply and demand increasing at a rapid pace they are also looked upon to produce higher quantities of food and grain in the same amount of time, all while protecting the environment.

Thanks to today’s innovative technology, environmental concerns including soil erosion, animal welfare and nutrient runoff can be minimized or prevented.

Farms are becoming increasingly progressive and the use of technology has made farming practices more sustainable to the environment than we have ever seen in history.

Improvements in technology continue to help growers with their environmental stewardship efforts, including:

Precision Maps: Growers are using location-specific information about soil, nutrients, moisture and yield to help them make educated decisions about fertilizer placement and application levels. This contributes to smarter use of nutrients such as nitrogen, which helps reduce nitrogen runoff and leaching.

• GPS: Today, most tractors and many other types of farming equipment are guided by GPS signals, improving the accuracy of their route for planting, fertilizing and harvesting crops.
• Farm Equipment: Improved equipment features help growers work faster, but also smarter. Upgraded planter technology allows growers to adjust seed rates and plant multiple varieties throughout their fields without stopping their planter – improving the yield, but also allowing farmers to account for different soil types and conditions throughout their fields to improve environmental stewardship efforts. Tractors, combines and other equipment have been designed to be more fuel-efficient and operate with lower environmental footprints. Sprayers have been designed to provide more accurate product application and more efficient product usage to help farmers maximize the products they are using in their fields.
• Soil Sensors and UAVs: Growers are also using sensors to measure moisture, chemical and biological properties in their soil and drones (UAVs) with cameras and sensors attached to them to help leverage environmental stewardship practices and improve crop yield to meet the growing demand for food production.

An Industry-wide Priority

Growers and ag business professionals know the importance of protecting our environment and leaving it in better condition for the future.

To recognize these efforts, many state organizations have implemented agricultural environmental leadership awards to annually highlight innovative farm practices throughout the country. National industry associations such as The Fertilizer Institute (TFI) have also implemented programs to recognize environmental leaders. Their 4R Advocates program encourages ag retailers to recognize their growers who are leading the way with exceptional nutrient stewardship practices. Winners are named 4R Advocates and help TFI share insight and success stories from the field level.

Environmental stewardship requires using fewer resources, developing new ideas and managing current resources provided by the environment to help protect the land. Protecting the world we live in is everybody’s responsibility, but farmers, ag retailers and ag industry professionals and trade organizations are proudly leading the way.

Original Source: Leaders of In-Furrow Technology, West Central

There are many issues growers face in today’s agricultural industry. One rising to the top of the list is low commodity prices.

Growers across the country are facing the harsh reality of a decrease in income forecasted for the third straight year due to an extended decline in corn and soybean prices. According to the USDA, net cash farm income for 2016 is forecast at $94.1 billion, and net farm income at $71.5 billion – following the declines in 2015.

One way growers can help their profitability during this time is to make sure they are getting the best yield possible, so they simply have more crop to sell.

Growers should make sure they are maximizing their production practices to help capitalize on the best potential yield:

• Proper soil preparation, prior to planting
• Applying crop nutrients and fertilizers as appropriate to help with emergence and throughout the life of the plant
• Applying crop protection products as appropriate to help combat disease, weeds and insects
• Proper irrigation, as appropriate
• Effective harvesting practices and techniques

Secondly, growers should make sure they are using these efforts in collaboration with the appropriate seed genetics to get the best yield they can, which will give them more bushels to sell at harvest time.

In this video clip from June 2016, Dr. Fred Below with University of Illinois, explains that low commodity prices are one of the most important issues facing agriculture today and explains how growers can best deal with this issue.

Transcript:
Low commodity prices are a real problem, and the only way I can see to overcome those is to be able to produce more. If the price is low I need to have more of it to sell. So, I don’t think I’m going to save myself to prosperity because that would imply that I’m wasting money.

I think it comes down to having the basics to production correct, and make sure you’re using those to get as much yield as you can out of today’s genetics.

Original Source: Leaders of In-Furrow Technology, West Central

Nutrient management is as important in fall as it is at planting.

Growers considering a fall anhydrous ammonia application can take measures to make the most out of their fertilizer investment, while supporting nitrogen management best practices, says Eric Scherder, Ph.D., field scientist, Dow AgroSciences.

“Nitrogen isn’t a one-time event,” Scherder says. “There has to be forethought about how to manage it today and tomorrow.”

Growers who are serious about reducing nitrate loss into groundwater can take steps when making fall applications. These steps include evaluating application methods, paying attention to temperature and using a nitrogen stabilizer to reduce nitrate loss due to leaching and denitrification.

Important Considerations Before Fall Application

There are best management practices growers can follow this fall to optimize fertilizer applications.

In the fall, let temperature drive timing. Fall nitrogen applications should be based on soil temperature, not calendar date, Scherder says. Wait to apply nitrogen until soil temperatures drop below 50 F.

“Nitrosomonas bacteria, which converts ammonium nitrogen to the nitrate form that’s susceptible to loss, are active until soils reach freezing temperatures; however, their activity is significantly reduced once soil temperatures drop below 50 degrees,” Scherder says. “This is important to consider when making fall applications to protect that investment.”

To learn more about nutrient management visit with our agronomy team today.

The 2016 harvest season has been one for the books with the USDA expecting farmers to harvest record amounts of corn and soybeans. These record yields highlight the fact that modern farming operations are bigger than ever – both in acreage and bushels.

During the busiest times of harvest, the number one question farmers ask themselves is how much crop they can take off each day – and if they have the appropriate resources to dry and store it. A cool, wet and windy fall has resulted in farmers harvesting corn at higher, moister levels than originally anticipated. This has increased pressure on grain dryers and localized propane supplies.

Although the last few weeks of harvest can be hectic, it is also the best time to evaluate how efficiently grain is moving through your operation and identify any areas that might need improvements in 2017.

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CHS Board addresses 2016 equity management; delays individual equity redemption program changes

 The CHS Board has delayed implementation of the company’s new individual equity redemption program, a decision made following its regular review of the CHS equity management program.

“This decision was made as we considered a number of factors, including our commitment to balance sheet management and the current economic cycle,” says CHS Board Chairman Dave Bielenberg. “CHS remains financially sound and profitable, but as we navigate this economic cycle, the board believes this delay was appropriate as we continue to take a long-term view in managing equity redemptions.”

When effective, the new program would add “age of equity” distribution like that now used for member cooperatives to the existing “age of producer” program. It had been set to take effect with redemptions made based on individuals’ fiscal 2016 (Sept. 1, 2015 – Aug. 31, 2016) business with CHS. It is now slated to take effect for fiscal 2017 (Sept. 1, 2016 – Aug. 31, 2017) business and will affect distributions taking place in fiscal 2018, although the board will continue to evaluate this timing as part of its overall equity management review.

In the meantime, CHS will continue to redeem 100 percent of individual equity upon request to producers age 70 or older and to estates. As previously announced, producers who have already received a full equity redemption at age 70 will receive any future patronage distributions as 40 percent cash and 60 percent equity.

While specific amounts of patronage distributions and equity redemptions will be reported after CHS reports fiscal 2016 results in November, Bielenberg adds that the company intends to return 40 percent of patronage earnings in cash. He also notes that CHS will not issue non-qualified equity for fiscal 2016 and will pass through unused portions of the company’s Section 199 domestic production deduction (DPAD) to eligible owners.

To date, CHS has redeemed previously earned member cooperative equity through a portion of 2006, well ahead of the CHS Board’s goal of maintaining age of equity at about 15 years and a significant improvement from age of equity at 40 years earlier this decade.

In addition, the CHS Board has also determined that the company will return 40 percent of fiscal 2016 patronage earnings to eligible member cooperatives in cash. The company will not issue non-qualified equity for fiscal 2016 and will pass through unused portions of its fiscal 2016 Section 199 domestic production deduction (DPAD) to eligible owners.