August 2021
“I LIKE TO BE OPTIMISTIC.
“It was one of those days you
WHY BE ANY OTHER WAY?
never forget and hope you never
TO BE A FARMER,YOU HAVE
have to live through again.”The Derecho, P. 28
TO BE OPTIMISTIC.”Family,P.62
Carbon Farming Digest, P. 33
*+ther A1#1/t L+w ŏ
In the Grain Mark!0/ĕ P. 15
40 Seasons: No-Till Saved Their Farm, P. 54
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/August 2021
Gleanings Q&A: The Successful The Bottom Line
Useful tidbits about the Interview Farm expense
write-offs
world of agriculture Stefani Millie Grant
12
4 8
Machinery Insider™
Can Their Problem WHAT’S Benchmarking Iron Costs
Be Solved? INSIDE Tactic guides machinery
We have assets; we have work. We purchases and aids
have four children; two sons are financial health.
farming with us. Should we keep
20
the farm together or divide it?
17
The Derecho: Carbon Farming Digest All Around the Farm®
Rebuilding a year later Discover how to reap the benefits Ideas from farmers
since 1929
28 of a promising new crop.
75
33
2 Across the Editor’s Desk® 17 Can Their Problem Be Solved? 48 Brainy Bins
4 Gleanings 20 Machinery Insider™ 50 Rounding the Bases
6 15 Minutes With a Farmer 25 New Tool for Farmers: SF Live 54 40 Seasons
7 They Said It 26 Weather Trends 57 Pork Insider®
60 Living the Country Life
8 Q&A: Stefani Millie Grant 28 The Derecho: 1 Year Later
10 In Case You Missed It 33–40 Carbon Farming Digest 62 Family
12 The Bottom Line 75 All Around the Farm®
15 Your Profit 42 Soybean Sultans
44 Seed Masters
Successful Farming magazine serves the diverse business, production, and family information needs of families who make farming
and ranching their business. Our passion is to help you make money, save time, and grow your satisfaction in the farming business.
August 2021 Successful Farming at Agriculture.com 1
ACROSS THE ®
EDITOR'S DESK®
Editorial Ag Technology
CARBON FARMING Executive Editor Laurie Bedord
Successful Farming Magazine, Agronomy & Technology Editor
Farmers are learning more about carbon 1716 Locust Street/LS257 Megan Schilling
markets — and how they can cash in. Des Moines, IA 50309-3023 | Email:
[email protected] Crops Technology
t’s hard to see or hear an agricultural news report these days Executive Editor Gil Gullickson
without some development on the carbon marketplace. It Editorial Content Director Dave Kurns Crops Editor Bill Spiegel
could be businesses jumping in to buy carbon credits,
companies pledging to eliminate their carbon footprints by Art & Production Family
2050, or ag tech firms unveiling new tools to measure the Creative Director Matt Strelecki Family & Farmstead Editor
impact of practices such as cover crops, minimum tillage, Editorial Production Manager Lisa Foust Prater
grazing livestock, and water management to sequester more Diana Weesner
carbon in soils. Audio & Video
Everyone agrees that farmers must be part of the solution. News & Business Multimedia Editor Jodi Henke
We’ve been covering carbon markets for decades. In 2021, Marketing Editor Mike McGinnis Senior Producer & Custom Solutions
however, things have heated up. Farmers want to learn more. Digital Content Manager David Ekstrom
Corporate partnerships are being formed. The government is Natalina Sents
getting involved. We’ve stepped up our coverage: In this issue we Digital Content Editor Emma Henning Contributing Copy Editor Nancy Dietz
bring you four stories to share insights and practical examples of Contributing Editors Al Kluis, Raylene
farmers becoming part of the solution: Machinery Nickel
Executive Editor Dave Mowitz Editors Emeritus Gene Johnston, Dan
“Better Water, Fewer Emissions,” pages 37-38: How conservation Content Editor Paula Barbour Looker, Cheryl Tevis, John Walter
practices helped clean up an Oklahoma watershed.
“Soil Holds the Key,” pages 35-36: How one farm prepares for Publishing Administration / Advertising Sales
extreme weather but also sequesters carbon.
“Account for Carbon,” pages 39-40: Featuring a new online tool Sales & Marketing Director Marty Wolske
to measure carbon uptake. National Account Executives Tom Hosack, Ali Peltier,
“Farming Reimagined ,” pages 33-34: YouTube sensation and
farmer Zack Smith brainstormed new ways to bring livestock Brian Keane, Steve Dado
back to the fields — and increase yields of his cash crop. What Marketplace Executive Collin Coughlon
was born was Stock Cropping, an innovation that could have Director of Digital Strategy Jessie Scott
many benefits, including building carbon. The system might Digital Services Manager Logan Pralle
also help smaller farmers improve soil quality and grow yields. Digital Campaign Specialist Olivia Stoops
Customer Experience Manager Jana Morrissey
Our coverage in Successful Farming® magazine and on Customer Insights Analyst Lucy Hermann
Agriculture.com will focus on practical ideas that farmers can Sales Assistant Lexie Troutman
implement;and how they benefit financially. Contracts and Billing Specialist Kat Lewis
Do Farmers Care About Carbon? Meredith Agrimedia Custom Studio
A recent study from Purdue University suggests farmers are
not biting just yet. Its poll showed that only 1% of producers had Content Director Justin Davey
signed a contract to participate in the carbon market. Whether Content Manager Kasey Riebel
or not it takes hold, we’ll keep you informed.
Consumer Marketing Manager Karlee Bahlmann
Here’s to a successful August! Business Manager Darren Tollefson
Senior Production Manager Jim Nelson
Dave Kurns Digital Imaging Specialist Christopher Sprague
Editorial Content Director Director of Quality Joseph Kohler
[email protected]
Twitter: @davekurns Senior Vice President/Group Publisher Scott Mortimer
Follow us: Twitter: @ SuccessfulFarm • Facebook: @SuccessfulFarmingUSA Meredith National Media Group
President CATHERINE LEVENE
President, Meredith Magazines DOUG OLSON
President, Consumer Products TOM WITSCHI
President, Meredith Digital ALYSIA BORSA
EVP, Strategic & Business Development DAPHNE KWON
Executive Vice Presidents
Chief Revenue Officer MICHAEL BROWNSTEIN
Digital Sales MARLA NEWMAN
Finance MICHAEL RIGGS
Marketing & Integrated Communications NANCY WEBER
Senior Vice Presidents
Consumer Marketing STEVE CROWE Consumer Revenue ANDY WILSON
Corporate Sales BRIAN KIGHTLINGER Foundry 360 MATT PETERSEN
Product & Technology JUSTIN LAW Research Solutions BRITTACLEVELAND
Strategic Planning AMY THIND
Strategic Sourcing, Newsstand, Production CHUCK HOWELL
Vice Presidents
Brand Licensing TOYECODY&SONDRANEWKIRK Finance CHRIS SUSIL
Business Planning & Analysis ROB SILVERSTONE Strategic Partnerships ALICIACERVINI
Strategic Development KELSEY ANDERSEN
Vice President, Group Editorial Director STEPHEN ORR
Chief Digital Content Officer AMANDA DAMERON
Director, Editorial Operations & Finance GREG KAYKO
Meredith Corporation
Chairman & Chief Executive Officer TOM HARTY
Chief Financial Officer JASON FRIEROTT
Chief Development Officer JOHN ZIESER
President, Meredith Local Media Group PATRICK McCREERY
Senior Vice President, Human Resources DINA NATHANSON
Senior Vice President, Chief Communications Officer ERICA JENSEN
Vice Chairman MELL MEREDITH FRAZIER
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2 Successful Farming at Agriculture.com August 2021
*
GLEANINGS THE AVERAGE
AMERICAN’S
Compiled by ACTIVITIES EMIT
Megan Schilling 1.33 TONNES
OF CARBON
Agronomy & EVERY
Technology Editor MONTH.
Earth’s carbon The
reservoirs (gigatons) total
value of
• Plant biomass 560 Gt global
• Atmosphere 750 Gt carbon
• Shallow ocean 1,000 Gt markets
• Soils 1,500 Gt grew
• Deep ocean 38,000 Gt nearly
• Earth’scrust 100,000,000 Gt 20% in
2020.
Companies
targeting Aviation
carbon accounts for
neutrality:
2.5%
• Apple by 2030 of global CO2
• Ford by 2050 emissions.
• Verizon by 2035
INTENSIVELY MANAGED
4 Successful Farming at Agriculture.com August 2021 AGRICULTURAL SOILS
HAVE LOST 50% TO 7ĀŃ OF THEIR
PRE-CULTIVATION CARBON.
Sources: Refinitiv Carbon Market in Review, Apple, Ford, Verizon, Our World in Data, University of
Nebraska-Lincoln Institute of Agriculture and Natural Resources
Artwork: Getty Images, Steven Puetzer, Ju-Ju
15 MINUTES
WITH A FARMER
KEVIN MAHALKO Wisconsin and has grown to
more than 2,000 members.
Grazing advocate finds niche with organic dairy herd
and a farmer-owned cooperative. SF: How did you embark
By Bill Spiegel, Crops Editor just chocolate-filled water. Not chocolate, upon a strictly grazing
[email protected] but soil. It’s something we have to fix. And
we have the knowledge to do it. system?
evin Mahalko helped lead his family
dairy farm to an organic, grass-fed SF: Why did you move your farm toward KM: People just were
operation in the 1990s, finding that organic? interested. We’d do pasture
implementing innovative grazing walks and see each other’s
practices resulted in improved soil KM: We’ve seen a steep decline in the number farms and try new things.
health, healthier food, and more revenue. of dairy farms in the last decade. There are There were good networks
With his retired parents, Mahalko runs a fewer than 9,000 dairy farms in Wisconsin of farmers helping each
40-cow dairy, with 80 heifers and grass-fed now, and in 2010 there were 13,000. I went other. We also had a good
steers, near Gilman, Wisconsin. Extension agent who helped.
to organic not necessarily to capitalize on Now, we’re not living in a
SF: What is the history of your higher prices, but to reduce the huge dream world. While a lot
swings. It was hard to establish of people who went into
farm? a budget when milk would grazing are still in it, there
range from $9 to $19 per hun- are many who didn’t want to
KM: The dairy started in 1969. dredweight. We’ve lost some do something different. This
My father had the vision to production volume, but gained requires more day-to-day
give me ownership of cattle much better financial stability. management, and you have
in exchange for working on to be in a daily harvest mode
the farm. Of our 350 acres, 120 SF: What is required to mentality.
acres are dedicated to rotational participate in the Organic Valley
grazing. We have been certified SF: In what ways do you
organic since 2011. Our milk cooperative?
is marketed through the work to improve the soil?
Organic Valley Cooperative’s KM: The cows eat high-
Grassmilk product line, which quality pasture and hay and KM: We haven’t bought any
means the cows are grass-fed, receive necessary supple- fertilizer for several years.
without any grain in the diet. ments. They receive no antibiot- We conduct soil tests and
ics, growth hormones, or GMOs. then monitor what we need.
SF: Where does soil health come Animal health is a priority. Wellness We’ll no-till clover into pas-
checks and veterinarian oversight are tures to capture atmospheric
into play? required. A 100% grass-fed farm receives an nitrogen. We spread manure,
annual on-farm review. either as compost, direct
KM: We’re looking at having the most milk spreading, or via grazing. We
per acre and want to push management. SF: Has the Grassmilk brand of organic use cover crops to suppress
Pasture must be high quality, so good soil milk been good for participating dairy weeds on farm fields planted
is necessary. I’ve seen a lot of small-farm farms? to grazing pasture, and on all
agriculture in Europe. Ruminant animals new seeding hayfields.
have helped build really rich soil globally KM: It’s been great for our members
over the years. Here, some of our rivers are within Organic Valley. That co-op started in SF: What have you learned
Background: Kevin Mahalko is a Gilman, WI by reducing tillage, no-
member of the CROPP Cooperative/ Incorporated in 1914, Gilman in
Organic Valley as a Grassmilk farmer. February hosts the Snieg Fest, tilling cover crops into
He also works as a grazing educator for which features snow sculpting
River Country RC&D and is president and a frying pan toss. It is home pasture seedings, and graz-
of GrassWorks, an organization that to the Gilman swinging bridge, the
educates graziers. last swinging bridge in Wisconsin. ing them?
KM: Soil health is our wealth.
If we take care of that
resource it improves. Over
time, we’re increasing yields
by carrying more animals
and getting more tonnage per
acre. It’s exciting.
6 Successful Farming at Agriculture.com August 2021 Illustration: Lauren Crow
THEY SAID IT let’s go“Wethought,
for broke.”
“Farmonious Movement” yields the best use of
everything’s purpose, p. 33.
“Everything “We ha2en’t bought
is tied *y f!.0%(%6er for
/!2!.al y! ./ċ”
together.”
Grazing advocate shares methods for improving soil, p. 6.
A weather-resilient cropping
system comes from interconnected
practices, p. 35.
“WHEN WE THINK WE’RE DONE WITH ONE LOCATION,
WE FIND MORE
STRUCTURAL DAMAGES.”
Post-derecho surveys estimated 140-mph winds in some areas, p. 28.
“We feel like “FROM MY POINT
we need to OF VIEW, ALL THE
partner, and FAMILIES WHO COME
we have to TO STAY ARE PART OF
have skin in WHAT I DREAMED OF.”
the game.”
Couple with farm-stay business have also become educators, p. 60.
Unilever has cost-share
sustainability programs with
soybean farmers, p. 8.
August 2021 Successful Farming at Agriculture.com 7
Q&A
The Successful
Interview
STEFANI MILLIE GRANT don’t feel like they’re out
there doing this alone on an
What does sustainability mean to Unilever? This consumer island.
packaged goods company is leading the charge.
SF: Where else are you
By Dave Kurns, Editorial Content Director looking at bigger issues that we consider as a
company such as plastics, packaging, climate working with producers?
[email protected] | Twitter: @davekurns change – issues where we think policy solu-
tions can help solve problems. The second SMG: In Arkansas, we’ve
id you know that all of the soy oil hat I wear is working on our sustainable been working with our
that goes into making Hellmann’s sourcing programs in the U.S. and Canada. rice growers for our Knorr
mayonnaise comes out of Iowa soy- I get to work with our brands, procurement brand. We’ve been working
bean fields? In fact, Unilever – which (ingredient buying), our suppliers, and then with them for the last two
also makes consumer products from the farmers who work with our suppliers to years in partnership with the
makeup to food – is leaning into sustain- design and implement and develop all of our University of Arkansas on
ability, having launched a program for 361 helping them use less water
farmers in Iowa, and it is looking at pro- sustainable sourcing programs. to grow rice.
grams for farmers in other states, as well.
Successful Farming® magazine SF: What does sustainability mean We have a cover crop pro-
caught up with Stefani Millie Grant, gram with dairy farmers in
who is leading Unilever North to Unilever? Michigan. We’ve been talk-
America’s sustainability efforts. ing with farmers in North
SMG: For agriculture, we really Dakota about wheat, trying
SF: You grew up in Iowa. What is define sustainability as continual to get a program going there
improvement by working with on soil salinization.
your background?
our suppliers and their farmers, SF: Why do this? What’s the
SMG: My parents both grew understanding what practices
up on farms in northeast they’re doing, and then work- motivation for Unilever?
Nebraska. I think my dad ing to help them improve. It’s
probably wishes he’d stayed SMG: It really is the Unilever
on the farm. I spent time on my going to vary based on the coun- ethos. We’re not just going
aunt and uncle’s dairy farm in the sum- try, the region, the farm. No fields to say, “You are going to do
mers growing up. It’s one of those things and no farms are ever the same. this.” We feel like we need
I enjoyed as a kid; I thought it was fun to to partner, and we have to
go milk the cows! It’s not work, it’s fun. I SF: How is Unilever working with Iowa have skin in the game. We
definitely grew up with an appreciation of need to be there hand-in-
it. I still have cousins who farm. It’s near and soybean farmers? hand and say, “OK, we want
dear to my heart, being from Iowa and hav- you to do this, and we’re
ing my family come from farming. SMG: Our Hellmann’s brand sources its soy going to help you do it along
oil that goes into Hellmann’s mayonnaise the way.” We think it’s a
SF: It must have helped you land at Unilever? out of Iowa. We developed a pilot on cover much better way than just
crops because I had heard from farmers that, demanding it be done.
SMG: I joke that the company took me “Hey, this is something we’re interested in.”
because I was from the Midwest and I know So we worked into a small pilot with some SF Bio
how to talk to farmers, so I wouldn’t scare state funding from the Iowa Department Name: Stefani Millie Grant
them away when we came in with our of Agriculture and Land Stewardship.
program. We had a great uptake in interest in it. We Title: Senior manager,
redesigned the program and relaunched it external affairs & sustainability
SF: What does it mean to be senior manager in 2018 to focus on cover crops. Now we Hometown: Sioux City, Iowa
pay a cost-share with our farmers on cover Current residence:
of external affairs for sustainability? crops and help them plant cover crops and Alexandria, Virginia
also give them technical assistance through Education: Master of
SMG: I wear a couple of different hats Practical Farmers of Iowa. We want to business administration,
within Unilever. One is working on the make sure they have a good experience, that University of Iowa; bachelor of
external affairs side, so that’s actually work- they’re not just trying to figure it out on arts in accounting and public
ing on government affairs and policies that their own. We’re trying to give them that administration, Buena Vista
affect Unilever’s ability to do business, or network and that social support, too, so they University
Family: Husband John and
daughter Alexandra
8 Successful Farming at Agriculture.com August 2021 Illustration: Lauren Crow
O
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ICYMI In Case You
Missed It
MARKET POWER
INFRASTRUCTURE
White House backs right to repair, seeks more
competition in agriculture. FINANCING
has a leading role in carrying to ensure they do not hinder competition in Biden Says ‘No’ To
out President Biden’s executive the seed and other input markets. Gas Tax Increase
order to restore competition in the
marketplace. “Big ag is putting a It will take months or years to During a trip to southwest
squeeze on farmers,” said Biden implement that bold agenda. Still, farm Wisconsin, President
when he signed the order last month. groups welcomed the executive order. Biden said he opposed a gas
“They’re seeing price hikes for seed, According to the National Farmers Union, tax increase to pay for an
lopsided contracts, shrinking profits, and it’s no coincidence that farmers have less infrastructure package. “Working
growing debt.” USDA is responsible for bargaining power and fewer choices at families have already paid
one-fifth of the 72 recommendations for the same time concentration has increased enough,” he said. In negotiations
action in the order while the FTC would among ag processors and suppliers. The with a bipartisan group of
issue right-to-repair rules so farmers American Farm Bureau said, “Ensuring senators, the administration
can repair their tractors rather than take farmers have the ability to perform cost- dropped its proposal to eliminate
them to a dealership when software effective repairs on their own equipment the stepped-up basis tax break
malfunctions. will keep America’s farms running and that eases the burden on heirs.
The chore list for USDA includes financially sustainable.”
introducing more transparency in livestock TRADE DEVELOPMENT
marketing, acting to “bolster competition On the day Biden signed the order,
within highly concentrated agricultural Agriculture Secretary Tom Vilsack visited Diversity Needed In
markets,” writing a stricter rule on when the site of a proposed $325 million cattle Export Markets,
meat can be labeled “Product of USA,” and slaughter plant in southwest Iowa and Says Vilsack
sending the White House a report on any announced USDA will provide a minimum
needed changes in antitrust and patent laws of $500 million in grants, loans, and griculture Secretary
technical assistance to expand meat and Tom Vilsack says
poultry processing capacity. America ought to diversify
its sales to a broader range
of buyers. “I think there’s an
overreliance on China right
now,” he said at a technol-
ogy conference, pointing to
the unresolved Sino-U.S.
trade war. “It’s a complicated
relationship and anything
can disrupt it at any point in
time.” China is expected to
buy $1 of every $5 of ag ex-
ports this year. Vilsack said
Southeast Asia, Africa, and
Central and South America
deserve attention.
BIOFUEL
Ethanol Shrugs Off
Court Losses
The future is bright for corn
ethanol as a low-carbon
alternative to gasoline, says
the ethanol industry, despite
losing two cases in seven days
before the Supreme Court and
a U.S. appeals court. “We have
an affordable, environmentally
friendly product that has a high
value to not only the consumer but
10 Successful Farming at Agriculture.com August 2021 This article was produced in collaboration with the Food & Environment
Photography: Petmal, Getty Images Reporting Network, an independent, nonprofit news organization producing
investigative reporting on food, agriculture, and environmental health.
also retailers,” says Growth Energy. The Renewable sequestration contract, 2.6% vs. 1%, says a Purdue producer-led, and bipartisan
Fuels Association says the court decisions, on survey. Solar leases, which may exceed $1,000 an … those are magic words.”
RFS exemptions and year-round E15, were only acre, “look quite favorable to expected earnings Under the Growing Climate
temporary setbacks. from producing crops,” says Purdue economist Solutions Act, USDA would
James Mintert, and they don’t require changes in help farmers enter the
The industry is promoting ethanol as the climate- production practices that often are part of carbon carbon market by setting up
friendly fuel of the future and also refers to E15 as contracts, which pay $20 or less per acre. Wind is a a database of climate-friend-
unleaded 88, the octane rating of the fuel, a notch much bigger power source than solar; some 67,000 ly practices and certify the
higher than 87 octane regular-grade gasoline. turbines generate enough electricity for 38 million third-party agents who
Ethanol and farm groups asked the EPA in July homes, says a trade group. verify carbon capture on the
to consider a “high octane-low carbon” standard farm. Utah Senator Mike
for light-duty trucks. The focus on ethanol as a CARBON MARKETS Lee voted against the bill as
low-carbon fuel is a change in emphasis from its government intrusion “into a
early days as the homegrown answer to expensive Climate Bill for Agriculture market that is blooming on
petroleum imports. Passes First Test its own.” Some farm-state
Republicans in the House
Farm-state lawmakers hope to include ethanol he Senate passed the first-ever climate share those objections, cloud-
in any forthcoming climate or infrastructure bill. mitigation bill for agriculture on a 92-8 ing prospects for a House
They have proposed $1 billion for equipment to vote — “a great victory,” said Senate version of the bill.
dispense higher-blend biofuels, $200 tax credits to Agriculture Chairwoman Debbie Stabenow
automakers for each flex-fuel vehicle they produce, (D-MI). “What we are doing is voluntary,
and tax credits to retailers or refiners for each gallon
sold of E15 or higher ethanol blend. Upcoming • 26: First USDA forecast of Departments of
farm exports in fiscal 2022 Agriculture annual
FARM REVENUE August September meeting, Louisville, KY
• 18-20: American • 2: USDA updates forecast • 20: Agricultural Business
More Solar Leases Coalition for Ethanol of 2021 farm income Council of Kansas City
Than Carbon Contracts conference, • 19-22: National holds annual Ag Outlook
Minneapolis, MN Association of State Forum
Though the number of participants is very
low, twice as many farmers have leased land
for solar electricity as those who hold a carbon
THE BOTTOM
LINE
of the time. The cost of the
item can be deducted in the
tax year it was “placed in
service” — that is, used in
the business. One caveat to
the 179 deduction is that you
can’t use it to run your busi-
ness income into the nega-
tive; that is, the deduction is
limited to the total amount
of your net income. The 179
deduction applies to used as
well as new equipment.
Bonus Depreciation
n 2003, to encourage busi-
nesses to purchase new
equipment, Congress and
the Treasury Department
enacted “bonus deprecia-
tion.” Originally, the legisla-
tion allowed a business,
FARM EXPENSE WRITE-OFFS including farms, to write off
an extra 50% of an equip-
The Section 179 tax deduction applies to used as well as new ment purchase the first year
and then depreciate the re-
maining 50% over whatever
equipment that is used for business 50% of the time. period normally applied for
the item. In 2017, the Tax
By Shawn Williamson Small equipment requires a little thought. Cuts and Jobs Act raised that
Starting in 2016, the IRS increased the de bonus depreciation to 100%,
riting off farm expenditures gets minimis threshold from $500 to $2,500. If an effectively meaning, for the
confusing, even for accountants. equipment purchase is “de minimis” (suf- past several years, you have
ficiently small), you can legally deduct the been able to write off the
The rules change seemingly every
year, making what you knew about
deductions 10 or 20 years ago purchase of up to $2,500 immediately. That whole purchase price of any
irrelevant. Consider these current rules and threshold is applied per invoice or even per new equipment immediately.
thresholds for writing off farm purchases of item. If you buy a generator for $2,000 and “Equipment” covers a broad
all sorts. a welding machine for $1,200 on the same range of things: pickup
Regular operating expenses are pretty invoice, you can expense both of them. trucks, tractors, machinery,
easy. If you’re working on a cash basis, when For larger purchases, you have been able tools, trailers, semis, railcars
you pay for the items, such as fertilizer, seed, to utilize the Section 179 deduction since — virtually any tangible asset
rent, insurance, and fuel, you can expense 1958. This deduction allows the expensing besides land, land improve-
them immediately. IRS Code Section 464 of part or all of an asset purchase in the first ments, and buildings. Unlike
limits the deductibility of prepaid expenses year. When I started working in the early Section 179, there is no limit
(buying next year’s seed and fertilizer this ’90s, the Section 179 deduction limit was on the amount of bonus
year) to 50% of other deductible farm $10,000 a year. For 2021, the limit is up to depreciation, so businesses
expenses. However, those whose primary $1,050,000! That’s enough to wipe out a lot can utilize it to pay no
occupation is farming are an exception, so of otherwise taxable income. income tax.
full-time cash basis farmers don’t need to To qualify for the deduction, you must Perhaps because of its
worry about that limit. use the asset for business a minimum of 50% powerful effect on taxable
12 Successful Farming at Agriculture.com August 2021 Photography: Nora Carol Photography, Getty Images
THE BOTTOM
LINE
continued
income, the legislation allowing bonus gross vehicle weight rating (GVW)? How Farmers who are in a hurry
depreciation is scheduled to sunset by 20% many miles will you drive? How much to show they have diminished
per year starting in 2023, when the limit will personal use will it have? Will you get a profits have several favorable tax
decline to 80%, then 60% in 2024, 40% in loan for it? This is the quick version of what write-off options for their various
2025, and so forth. However, any benefit the you need to know: Cars, light-duty SUVs, assets.
government starts is very difficult to end, so and trucks with less than 6,000 pounds
we’ll see if those slated reductions in bonus GVW have complex depreciation limits and Normally that makes sense,
depreciation actually happen. usually cannot be fully deducted the first but if you are more inclined
year. Pickup trucks and cargo vans above to slow down deductions
Land Improvement Write-Offs 6,000 pounds GVW do qualify for a 100% to smooth out income, you
write-off. can use regular deprecia-
riting off land improvements has some tion methods. Depreciation
nuances. Under regular depreciation Whether you should own the vehicle is a concept introduced by
rules, you would depreciate improvements inside your corporation or LLC, or own accountants in the 1800s to
such as drain tiles or berms over 15 years. it personally and pay yourself mileage re- recognize the decline in the
However, if you have a Natural Resources imbursement, depends on the cost of the ve- value of assets over their esti-
Conservation Service-approved plan, you hicle and the number of miles you drive. If mated useful lives. Check the
can elect the Section 175 soil and water you are going to drive a $25,000 small SUV IRS website for the depre-
conservation deduction. This election allows 20,000 miles a year for farming operations, ciable lives of farm assets.
the immediate write-off of activities such you probably should own it personally and
as leveling earth, terracing, contour fur- pay yourself mileage reimbursement. At The IRS allows an acceler-
rowing, restoring soil fertility, constructing 56¢ per mile, in 10 years, you’ll have been ated method called MACRS
drainage ditches and waterways, building able to take deductions totaling $112,000. to calculate depreciation. It
ponds and outlets, and planting windbreaks. If you’re going to drive an F-250 pickup shifts more of the write-
Effectively, this is almost anything you fewer than 10,000 miles a year, you’re going off into the first few years,
would do to your cropland. to want the farm to own it and just deduct rather than taking it evenly
The write-off of vehicles can be a tricky the actual expenses for fuel, insurance, and throughout the depreciable
issue. Clients call us all the time with what maintenance. Plus, having the farm buy a life. For a five-year asset, the
they think is a simple question: “Should heavy truck gets you the immediate write- deductions (which actually
my business buy my vehicle or should I off of the purchase price. occur over six years) look
buy it personally?” Unfortunately, it’s not a like this: 20%, 32%, 19.2%,
10-second answer; we respond with several You can see that there are several ways to 11.52%, 11.52%, and 5.76%.
questions. What is the vehicle? What is its get an immediate write-off of farm purchas- An equal deduction each
es if you’re in a hurry to wipe out profits. year is called straight-line
depreciation, and you are al-
lowed to choose that method,
especially if you’re trying to
slow down the deduction.
Why would you do that? You
may be losing money right
now, while you expect more
profitable years ahead. Or
you may be buying all your
equipment today and plan-
ning on no purchases during
the next several years.
Bottom line, there is a way
to expense purchases at virtu-
ally any speed you like,
provided you have handled
the accounting and tax
elections correctly.
14 Successful Farming at Agriculture.com August 2021 Photography: Andy Sacks, Edwin Remsberg,
Ron Levine, of Getty Images
YOUR
PROFIT
T CORN MONTHL
900’ 0
850’ 0
800’ 0
750’ 0
700’ 0
667’ 4
600’ 0
550’ 0
500’ 0
450’ 0
400’ 0
350’ 0
300’ 0
250’ 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
EXPECT AUGUST LOWS AGAIN
IN THE GRAIN MARKETS
The month has become a key change-of-trend marker.
By Al Kluis 2012, before exploding to the all-time high This chart shows the monthly
($8.44) in September 2012. high, low, and close of the nearby
keep a log of old trade sayings. A lot of CBOT corn chart since 2011. You
these axioms are simple and work year in What about August? Indeed, August 2012 can see the huge rally in the
was the highest monthly close. In September, corn market to the all-time high
and year out. (One example: “The trend is prices opened higher early on, but by late in 2012. From there, corn prices
went down to an important long-
your friend.”) term low in August 2019. The red
However, some old sayings stop working, September put in a massive hook reversal arrows show the occurrence of
major highs or lows in the month
or their timing may shift. For the first 20 lower on the monthly corn chart. By August of August.
years I was trading, one rule of thumb was, 2013, corn prices had turned sharply lower. turned higher in September
2019. The next important
“Watch for a change of trend the third week Prices continued to slide to the December low came in August 2020.
The April 2020 COVID-19
of June.” low at $4.10. (So 2013 was one year when the low was the lowest low
for the year, but the trend
This one appears to have altered. Over the month of August was not a trend-reversal turned higher in August,
with a huge rally into the
past decade, I have seen the change of trend month.) second quarter of 2021. I am
now watching for a potential
more and more often in August, not June. August or September low
on the long-term corn chart
When I look back at the last decade of my August/September Low in 2021.
long-term charts, August was not always the he long-term chart cycles I worked with
lowest low or highest high of the year, but it projected a major 68-month low in August
was often the month when a trend reversed. 2019. The corn market put in lows in
How has this worked since 2011 in the August or September from 2014 through
corn market? First, the corn market and 2019.
the entire commodity complex put in an Some of the extreme lows in late August
important low in late 2009. From that low were because so many farmers had corn in
($2.97), corn prices rallied more than $4.00 delayed price (DP) contracts that expired
per bushel to the high in June 2011. There the last day of August. Those who sold out
was an important secondary high in August on the last day of August sold at the lowest
2011. After that, corn prices fell until May price of the year. The corn market finally
Chart Source: DTN/ProphetX August 2021 Successful Farming at Agriculture.com 15
YOUR
PROFIT
continued
T SOYBEANS MONTHL
1900’ 0
1800’ 0
1700’ 0
1600’ 0
1300’ 0
1200’ 0
1100’ 0
1000’ 0
900’ 0
800’ 0
700’ 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
For soybeans, a lot of the timing of the for an August or September low in soybean This chart shows the monthly
highs and lows is quite similar to corn. prices. high, low, and close of the nearby
However, now with the soybean produc- CBOT soybean chart since 2011.
tion in Brazil and Argentina, I watch both How can you use this pattern? Here are You can see the huge rally to all-
February and August as key change-of- two suggestions: time highs in 2012. From there,
trend months for soybeans. prices dropped to the major
1. Avoid selling cash soybeans in August low at $7.80 in May 2019. An
The soybean market put in a major low important secondary low came in
in the fourth quarter of 2008 (during the fi- and September. This is often when you the soybean market in April 2020.
nancial crisis) at $7.76. From that low, prices have not only the lowest futures price but The rally kicked into high gear in
rallied to the August 2011 high at $14.56. often the worst basis. If you think this is August 2020, and prices exploded
Soybean prices dropped to an October low in one of those years when soybean prices will to the high in May 2021.
2011, then rallied to all-time highs ($17.94) advance into August, I recommend holding
in September 2012. The high monthly close call options instead of cash soybeans. Al Kluis
($17.21) came in August 2012. In September
2012, futures posted a huge reversal lower. 2. If prices do rally into August, then it has Commodity Trader
By August 2013, soybean futures had usually been a great time to place more Al Kluis has
dropped below $11 per bushel. Prices slid been trading
into September 2014, then rallied back into new-crop hedges or buy new-crop puts. grain futures
August 2015, before dropping to the next since 1974.
low in March 2016. Prices corrected back to The August rallies have often been a great Sign up for a
lows in August of 2016, 2017, 2018, and 2019. time to get some of the following year’s corn free trial to his
and soybean crops sold. daily morning
The lowest low was not always in email and
August, but in many years, August posted Note: The risk of loss in trading futures weekly
the lowest monthly low, and prices turned and/or options is substantial, and each inves- “Kluis Report” by going to
higher in September or October. In 2020, the tor and/or trader must consider whether this kluiscommodities.com.
COVID-19 panic low ($8.08) came in April. is a suitable investment. Past performance Kluis Commodity Advisors
The August low was a pause, in what turned — whether actual or indicated by simulated 901 - 12 Oaks Center Drive
out to be an explosive rally up to the high historical tests of strategies — is not indica- Suite 907
in May 2021. I am watching again in 2021 tive of future results. Trading advice reflects Wayzata, MN 55391
good-faith judgment at a specific time and is 888/345-2855
subject to change without notice. There is no kluiscommodities.com
guarantee that the advice given will result in
profitable trades. •
16 Successful Farming at Agriculture.com August 2021 Chart Source: DTN/ProphetX
Continue to next page
CROPS
NEW CROPS, NEW MARKETS Winter annuals like camelina can
work well with soybeans in a relay
Forever Green initiative puts new crops in the hands of farmers. cropping system.
By Raylene Nickel working with farmers to grow the new the efficiency of nutrient
crops, we’re working to bring the crops into use by extending the time
iversifying existing cropping systems the marketplace.” that living roots are actively
is the goal of Minnesota’s Forever extracting nutrients from
Green Initiative. A joint research Perennials like perennial grain intermedi- the soil.
and development effort of the ate wheatgrass and winter annuals like the
University of Minnesota (UM) and oilseeds camelina and domesticated penny- “The data suggests that in
the USDA Agriculture Research Service cress benefit cropping systems. They provide a corn-and-soybean system
(ARS), Forever Green Initiative is devel- soil-saving and nitrogen-capturing services only 50% of the nitrogen is
oping 16 new crops intended to increase that improve water quality by reducing both used by the crop; the rest of
the efficiency of cropping systems while runoff and leaching of nutrients. the fertilizer is lost through
enhancing natural resources and giving runoff and leaching,” says
farmers and rural communities new eco- The winter annuals work hand in hand Wyse. “In production sys-
nomic opportunities. with corn and soybeans in a relay cropping tems, including continuous
Topping the list of new crops are the four system. Winter varieties of fall-planted living cover, the efficiency
nearing or already in commercial produc- camelina and domesticated pennycress can goes up to between 80% and
tion: camelina, domesticated pennycress, be grown within soybeans planted in late 90% because of the living
perennial grain intermediate wheatgrass, spring. roots on the landscape. For
and hazelnut. the state of Minnesota, to
“New crops don’t come along very often,” “These winter annual crops grow like meet proposed water-quality
says Don Wyse, the UM researcher who cover crops and can be harvested for seed goals, we must incorporate
brainstormed the concept behind Forever without taking away from the corn and perennial crops and winter
Green 30 years ago. “The last new crop soybean crops,” says Russ Gesch, USDA- annuals into agricultural
that farmers began to grow and market ARS plant physiologist, Morris, Minnesota. landscapes.”
was soybeans. That’s a big gap in time from “The winter annuals provide environmental
then to now. It’s a big deal to develop a new benefits by keeping the soil covered and A variety of the winter
crop – to develop the production system and minimizing erosion. Their roots also take annual domesticated penny-
supply chain as well as the market. Besides up excess nutrients that can otherwise escape cress is being developed at
from drain tiles.” the UM to be released within
three years. “When fertil-
Perennials and winter annuals improve ized, it yields about 1,800
pounds per acre, or roughly
equivalent to the yield of
canola,” says Wyse.
Fertilized winter camelina
has yielded 1,500 pounds to
the acre at an oil content of
40% in research trials where
soybeans were planted in
early to mid-May in a relay
cropping system.
The oilseed crops can be
harvested over the top of the
soybeans in June or July.
In research trials, yields
of soybeans grown in relay
with either camelina or
domesticated pennycress
have been only marginally
reduced. “Soybeans grown
within camelina or penny-
cress yielded on average
Bonus Successful Farming at Agriculture.com August 2021 Photography: University of Minnesota, Gil Gullickson
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Winter annuals like CROPS Camelina Fills a Need
camelina can act like
cover crops and still continued “ Camelina is exactly what I was looking
enable row crops such as for,” says Joe Breker, a Havana, North
soybeans to be harvested the Land Institute have developed Dakota, no-till row-crop farmer.
later in the year. production systems and new mar- Finding an overwintering broad-leaved
keting outlets for Kernza grain, cover crop had been on Breker’s wish list for
10% to 15% less than full-season which is used by bakers, millers, years. Then he learned that winter camelina,
soybean without a companion brewers, and chefs. an oilseed crop, was being grown by the ARS at
crop,” says Gesch. Morris, Minnesota.
Deep-rooted perennial crops Breker acquired several pounds of seed and
Second Income have their best use on land where increased the seed on his own farm.
the production of annual crops like In early October of 2018, he no-tilled camelina
fter markets are established for corn and soybeans potentially leads into 70 acres of soybean stubble. “I seeded it with
the new oilseeds, the relay crop- to the leaching of nitrogen into an Amity single-disk drill, planting it in a skip-row
ping system could earn farmers a groundwater. pattern and paired rows 30 inches apart.” He
second income. “The oil from both seeded it at the rate of 6 pounds to the acre.
camelina and newly domesticated “Here in Minnesota, we’re “It didn’t grow in the fall, but it came up well
pennycress can be used in food seeing increasing interest in the in the spring and grew vigorously,” he says. “On
products and frying,” says Wyse. production of perennial grains May 20, I planted soybeans in between the
“We’re also looking at using the oil from rural communities in the camelina rows. The camelina was competitive
for industrial purposes, such as in western and southeastern parts of with weeds and soybeans.” He applied no
the development of polymers for the state where municipal wells fertilizer.
food packaging.” are contaminated with nitrate-N,” In late July, Breker harvested the camelina
Forever Green Initiative’s de- says Wyse. “Our research has over the top of the blooming soybeans. “I need-
velopment of production and mar- shown that nitrogen does not move ed to push the soybeans down, so I used a piece
keting is perhaps most advanced through the deep root system of of drain tile split and shoved it onto the guards,”
for the perennial grain intermedi- the perennial grain intermediate he says. “I also used some lifter guards.”
ate wheatgrass. “The first acres are wheatgrass. Perennial crops could The unfertilized camelina yielded 700
in production of our new variety be a new economic opportunity for pounds per acre.
of perennial grain intermediate these areas of rural Minnesota.” Breker applied herbicide once, just before
wheatgrass, MN-Clearwater,” says harvesting the camelina. “That’s a fraction of
Wyse. After years of research and what I might otherwise use on a full-season
If the harvested crop meets development, Wyse’s early vision is soybean crop,” he says. “Camelina is extremely
quality standards, it may be mar- beginning to take shape. “This is competitive with weeds in the early spring.”
keted as Kernza grain. getting exciting,” he says. “These Breker’s soybeans yielded around 75% of a
“Kernza is a trade name given new crops are becoming a reality full-season crop during harvest 2019. He notes
to intermediate wheatgrass seed and beginning to move into the that soybeans cut off during camelina harvest
meeting certain criteria,” says marketplace. They give farmers a were not able to recover, as the beans were on
Wyse. The trademark is owned by new tool for environmental their way to maturing at the R2 (full flower) stage.
the Land Institute, Salina, Kansas. stewardship.” “A longer bean might have helped, but this year,
The Forever Green Initiative and they may not have matured in time,” he says.
He followed up last fall aerially seeding
camelina mixed with rye as a cover crop on
300 to 500 acres. Because camelina seed is fine
and rye seed is heavy, Breker added ground
corn as an inert carrier to help achieve a bal-
anced seeding of both species.
Besides corn and soybeans, Breker also
grows specialty crops like radish, cereal rye,
and winter wheat for seed.
“As a cover crop, camelina fills a niche on my
farm,” he says. •
Learn More Joe Breker
Joe Breker
701/680-0379
[email protected]
Don Wyse
651/470-9878
[email protected]
Bonus Successful Farming at Agriculture.com August 2021
Continue to next page
In Ag
Bonus Successful Farming at Agriculture.com August 2021 Photography by Howard Sochurek,
Courtesy of LIFE Picture Collection, ©Meredith Corporation
69 Years Ago: Prairie Country From the Archives
The eyes of farmer Gus Dumler reflect a tractor
and driver, the prairie, and courthouse ruins in LIFE magazine debuted on November 23, 1936, as the first
the ghost town of Ravanna, Kansas. dedicated photography magazine in the United States. The
publication has been known for its stunning and eye-catching
photographs depicting all aspects of life. These images are from Bonus
that collection. For more LIFE photos, go to LIFE.com.
Month 2020 Successful Farming at Agriculture.com
MACHINERY
BOBCAT GAS UTVS UV34XL offers seating for
five passengers plus the
The North Dakota company adds two operator. A low, wide cab
gas models to its utility vehicle lineup. opening on both vehicles
makes entry and exit easier
for everyone.
By Natalina Sents posite material that resists dents, rust, and Bulked-Up Durability
Digital Content Manager
[email protected] | @Roots_Journey corrosion. here is more material in the
A standard 2-inch receiver hitch enables frame, suspension com-
obcat has expanded its UTV offer-
ing to include two new gas vehicles. towing of trailered equipment or materials ponents, wheel hubs, and
The UV34 and UV34XL gas models
feature an all-new chassis designed for up to 2,500 pounds. sealed wheel bearings than
better durability and ride quality. The
suspension system, towing capacity, and gas Stow smaller items in the additional in- in previous models, giving
engine were also upgraded to better serve
farmers. dash storage or under the flip-up seat. the UV34 and UV34XL
Power and Capacity to Work more durability. Stronger
oth machines have a 39.9-hp. two-cylinder More Comfortable Operation drive components, plus new
SOHC engine, a jump up from the 23.5-
hp. diesel UTVs. Maximum travel speed armers who spend long hours in their UTV shocks and springs, allow
is 35 mph. A 900-watt stator offers more will appreciate the improved comfort and the vehicles to be more
output for electric-powered attachments,
such as a snow blade. strength of the redesigned chassis. More productive in challenging
The 15.6-cubic-foot cargo box carries up
to 1,250 pounds and can be equipped with ground clearance provides a better off-road conditions.
an optional powered lift. The cargo box has
a one-piece design and is made of a com- experience, and improved seat contours
contribute to a more supported ride. The Price and Availability
suspension has a greater range of motion for oth machines are available
through Bobcat dealers.
better ride quality than previous models.
Instrumentation has been updated to The UV34 gas vehicle starts
make operation of these UTVs more at $14,700, while the larger
intuitive. Bigger controls and gauges also UV34XL gas model begins
improve ease of use. at $16,900. For more
The Bobcat UV43 will accommodate information, visit
an operator and two passengers, while the bobcat.com.
Bonus Successful Farming at Agriculture.com August 2021 Photography: Manufacturer
® Portable Generators
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plus Chippers, Log Splitters, Pressure Washers and more... powermate.com
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TOOL INVENTIONS concave custom-molded compos-
ite tub on Gearwrench’s 86995
By Dave Mowitz, Executive Editor, Machinery create a 13-pound creeper with
Smooth
Riding
Creeper
a 300-pound capacity. Fea-
tures include a concave tub,
ethylene-vinyl acetate durable
padding, and metal plates located next to
headrest for mounting magnetic lights.
Manufacturer’s list price for the 86995 is
$199, which includes a limited lifetime
warranty. Go to gearwrench.com.
Compact t 3 pounds and measuring just Durable eWalt expanded its tool storage
Hacksaw over 12 inches, DeWalt’s sub- Tool offering with top chests, work-
Storage benches, and rolling cabinets ranging
compact reciprocating saw delivers from 26 to 52 inches wide as well as
up to 2,800 strokes per minute com- 18 inches to 21 inches deep. Made in
bined with a 5∕8-inch stroke length the United States, the drawers in the
for fast cutting. Features include an LED work light. The rolling cabinets provide a 200-pound load capacity with one
model DCS312 kit lists for $189. Go to dewalt.com. 300-pound full-width drawer. Prices for the 21-inch-deep
series range from $599 up to $899. Go to dewalt.com.
Compact ăM’s Versaflo TR-800 Powered Air Purifying
Paint Respirator (PAPR) has a low-profile design that
provides more freedom compared with a fresh-air
Respirator system because the painter is not tethered to an air
hose. This allows the painter to move about the
booth easily and leave and return without removing
the equipment. The TR-800 PAPR system features
multiple speeds, audible and visual alarms, and the
ability to work with a wide variety of cartridges. Battery capacity
provides approximately 12 hours of run time. A complete kit includ-
ing the purifying unit, hood, belt holder, hose, battery, and charger
ranges from $1,749 up to $1,999. Go to 3M.com.
Bonus Successful Farming at Agriculture.com August 2021 Photography: Manufacturers
Continue to next page
START-UP
SPOTLIGHT
NEXT-GEN INSECT MONITORING environment, and ensure
the efficacy of products for
FarmSense provides real-time pest control information. invasive species. FarmSense’s
technology can support
By Megan Schilling integrated pest management
Agronomy & Technology Editor practices and help fulfill
[email protected] | @meganjoys pesticide reduction goals that
may soon be regulated.
ne of the biggest problems in crop What’s Next
production actually stems from the
smallest of sources: pests. hile FarmSense is
“Factoring in every crop, every currently focused on
insect, you’re looking at about $200 nut production and oth-
billion in damage to crops each year,” says
Eamonn Keogh, FarmSense cofounder and er high-value crops, the
chief technology officer.
In all crops, farmers weigh the cost of technology can be adapted
broadcast spraying and getting timing and
application just right to overcome insect to recognize invasive species
pressure. Yet, many current insect manage-
ment practices require manual counting and worldwide.
recording, which is labor-intensive, often
inaccurate, and takes one to two weeks to “We’re training our flight
get the data.
FarmSense, founded in 2016, has built a sensors to recognize exotic
platform that combines in-field insect traps
with sensors, machine learning algorithms, species so that when they ar-
and predictive analytics to help certified
pest-control advisers create better solutions rive in the U.S., we’re ready
in real-time for the farmers they serve.
for them,” Hickle says.
How FarmSense
Provides Efficiencies The team is already work-
he FarmSense insect traps are solar-pow- ing with collaborators in the
ered, wireless, and depending upon the type
of pest, can cover many acres with just a few Midwest to adapt the tech-
traps.
“We go by university recommendations nology for corn rootworm.
to determine the number of traps per acre,”
explains Leslie Hickle, cofounder and chief out of treating pest problems. FarmSense is preparing to
business officer of FarmSense. “It’s influ-
enced by the crop’s economic threshold for “We’ve talked to growers who, without launch with at least 1,000
tolerating damage. In nuts, most growers
use them at one per 20 acres.” these traps, plan to spray weekly for 12 traps to the market by
In corn, one trap could be placed to moni-
tor about 160 acres. weeks, which is something they’ve done for January 2021, and will
The traps attract and measure insects, col-
lecting data like sex, species, and population the past decade, and that has worked well continue to commercialize
count, which is sent to the cloud and can also
be viewed on a mobile device. for them,” Keogh says. “When we go into throughout the year so its
This information helps the farmer and
certified pest adviser take the uncertainty the field with our traps and data collection, products are available
we can identify that out of the 12 sprays, off-the-shelf.
nine were wasted. We are able to pinpoint
the optimal time when spraying should have About the Company
occurred.” Founders: Eamonn Keogh,
Harnessing all of the data provided by Shailendra Singh, and Leslie
smart traps means farmers could reduce Hickle
their pesticide use, save on input costs, and Headquarters: Riverside, CA
stave off pest resistance. Website: farmsense.io
“We’ve lost a lot of synthetic compounds Background: FarmSense
because of resistance or environmental created a smart pest moni-
concerns,” Hickle says. “Our industry is toring system that automates
developing natural products like phero- the process of real-time insect
mone disruptors, but they require more classification and counting in
precise timing, and we don’t want to lose crop fields.
those either.” Funding: FarmSense has
Hickle explains that insects have very earned $7.5 million in academ-
“plastic genomes” and are likely to evolve if ic research funding and has
natural products are misused. For this rea- raised $1.2 million in nondilu-
son it is all the more important to preserve tive capital from the National
beneficial insects, reduce damage to the Science Foundation.
Bonus Successful Farming at Agriculture.com August 2021 Photography: Manufacturer
CAN THEIR
PROBLEM BE
SOLVED?
with dividing land is trying
to be fair with similar values
or acres, often starting with
the home farm. The benefit
to dividing the farm between
two farming heirs is that they
can decide how to do things
for their own families in the
future. Keep in mind your
plan may be a combination
of dividing some land plus
a land entity. The land and
machinery/corporation may
not be divided the same way.
The recommendation to
divide the farmland often
MULTIPLE HEIRS goes against my grain. I
really like to see farms kept
together. However, some-
Problem: We have assets; we have work. We have four times we just have to be
children; two sons are farming with us. Should we honest and recognize that
keep the farm together or divide it? dividing some assets may be
better for the heirs. Farming
together might be the most
By Myron Friesen there’s only so much land to go around. She economical, but they would
could get a percentage of a land LLC, but have the land in a position
e own 1,500 acres and rent another that too will become a challenge. As a result, where they could make deci-
3,000 acres. We also have income again it would likely be better for her to get sions independently.
cash, which she could use to add land to her
from trucking, excavating, and On a separate note, you
livestock facilities. We feel blessed and her husband’s operation. should have a conversation
that two of our sons are back
farming and our one daughter is married to 3. Now we get to the elephant in the room about the rented land. Yes, I
a farmer across town. Our fourth child is a with your two sons farming together. know this is not under your
dentist. We want the farm to stay together. Seldom do two people get along perfectly. control, but this too can get a
In general, all four children get along. On You have a couple of options. One option is a bit odd as brothers potential-
the farm, most days our sons get along, land entity that holds the land together and ly start to compete for rented
but not always. Both of them already have then includes rental and buyout options for ground.
children who love farming. We feel like we future generations. For now, you would not People can get very
really need to be thinking several genera- need to worry about dividing parcels or try- emotionally attached to
tions ahead. Do you have any ideas? ing to be fair with soil quality, tile, irrigators, keeping everything together,
–Email from K.B. tillable acres, etc. You’d avoid problems that but when you have multiple
Solutions: someone else may need to face later. Some farming heirs, the best
love the idea of a land entity while others approach might be to divide
ou are wise to be looking ahead several see this as kicking the can of problems down some of the assets.
generations, K.B.: the road. Adding genera-
1. Your son who is a dentist will likely have tions and cousins often only
a great income, but don’t hold that against increases the challenges. Myron Friesen is co-owner of
The second option: Farm Financial Strategies in Osage,
him. He could be a silent owner on the farm, Iowa. For the past 21 years, he has
but that usually does not end well in the Identify parcels that give worked exclusively with farm families
long term. A suggestion would be some cash each farming son some across the Midwest to develop farm
equalization, likely from other assets or life individual land parcels transition strategies. Friesen grew up
insurance proceeds. – then they can choose to on a Mountain Lake, Minnesota, farm. He owns and
continue farming together operates a 1,070-acre crop and livestock farm with
2. Your daughter who’s married to a farmer
likely would love some farmland, but or separately. The challenge his wife and four children. farmestate.com
17 Successful Farming at Agriculture.com August 2021 Illustration: Matt Wood
THE
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Design are trademarks of BASF.
Pioneer® brand products are provided subject to the terms and conditions of purchase which are part of the labeling
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WE’RE GOING TO GRILL YOU.
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MACHINERY
INSIDER™
repairs, fuel, and lubricants,
and custom hire and rental
expense. Divide the total
by crop acres or harvested
acres. “Interest should
include both cash interest
paid and opportunity
charge on machinery and
equipment that is owned.”
To determine whether
your per-acre investment
and costs for machinery
are high or low relative
to other farms, check the
financial data generated by
farm business management
(FBM) programs around
the country. The Center
for Farm Financial
BENCHMARKING IRON COSTS Management at the
University of Minnesota
Besides guiding machinery purchases, it signals financial health. has data published online.
Online data is also available,
for example, from FBM
programs in Kansas, Illinois,
and North Dakota.
By Raylene Nickel “Benchmarking both machinery “For a farm with 3,000
investment per acre and machinery cost per crop acres, the machinery
eciding how much to invest in acre is important because the benchmarks investment per acre and
machinery requires a whole-farm show you how much money is tied up in machinery cost per acre are
machinery,” the Purdue ag economist points typically below $375 and
analysis of your operation. But all the
out. “High machinery investments tend to
numbers mean little unless you’re
able to put them in a framework that can $125 per acre, respectively.
give direction for sound decision making. reduce profitability. Typically, machinery But it’s important for farms
Benchmarking the financial information costs make up the second-highest farm cost to compare machinery
related to your own unique operation lets category, after cash rent.” investment per
you compare your individual data with that You can figure machinery acre with similarly
of other farmers. Yet, because your farming investment per acre by sized farms and to
operation is unique, benchmarking by itself dividing total crop machinery examine the trend in
doesn’t point the way to a sound decision, investment (tractors, the benchmark for a
according to Michael Langemeier at Purdue combines, and other crop- particular farm.”
University. Rather, it’s the red flags that related machinery) by crop A farm with
benchmarking raises that could prompt acres or harvested acres. a relatively
you to look at other financial relationships “In regions where double- high machinery
within your operation and chart a course cropping is prevalent, using investment per acre
from there. harvested acres gives a Michael Langemeier needs to determine
Deciding whether or not to buy more accurate depiction of whether this high
machinery is particularly complex because machinery investments,” says value is a problem.
of the interconnectedness of benefits and Langemeier. Just because a particular
costs, Langemeier adds. The value of benchmark doesn’t look
potential production increases and labor Calculating Iron Cost per Acre good, doesn’t necessarily
reductions must be weighed against
achinery cost per acre is figured by mean it’s problematic.
the increased costs for both interest and adding depreciation, interest, property But it’s a signal that you
depreciation. taxes, insurance, building expense, leasing, need further analysis,
20 Successful Farming at Agriculture.com August 2021 Photography: Getty Images, Purdue Univ.
CONFIDENCEIN YOU
IT’S WHAT WE IMPART
right people
right part
FEEL CON DENT
JohnDeere.com/Parts
JohnDeere.ca/Parts
MACHINERY
INSIDER™
continued
Benchmark machinery costs
before heading to a dealer’s lot
or auction to build confidence
that the highest price you are
willing to pay is realistic.
Langemeier explains. next benchmark to look at is your labor financial benefits to be
The benefits of investing in machinery cost as a percentage of total cost. It should gleaned from buying newer
be low, suggesting the machinery purchase machinery. This could
should outweigh the additional costs has – or will – result in labor savings. If be especially true if the
in increased interest and depreciation. the labor cost is also high, that signals a benchmark for prepurchase
“Even if you buy with cash, the purchase financial problem with the purchase.” iron investment cost is low.
has implications for the future. You need • Tax implications. Perceived tax benefits • Leasing. “Leasing a piece
liquidity in order to withstand the low- often drive decisions to buy equipment, of equipment could be more
profit times. That’s the danger of buying but Langemeier urges caution when economical than buying it.
machinery when you have larger profits.” considering this buying strategy. “Make It’s also easy to analyze the
sure the potential tax benefits actually do impact of leasing costs on
Guidelines to Buying Machinery outweigh the whole-farm costs related to breakeven prices.”
the purchase.”
angemeier offers the following guidelines • Repair costs. High repair costs generated • Benefits of technological
to consider before investing in equipment: by used equipment could signal potential
• Whole-farm finances. Look at the advancements. Though
liquidity of your operation. “If you have Change Benchmark If these can be difficult to
tight liquidity, you have to be extremely You Change Tillage quantify, the benefits of
cautious about buying machinery. Liquidity some advancements are
is determined by dividing current assets by hen considering the pros and cons of evident. “The benefits
current liabilities. A lot of farms across the management changes, it could help in are obvious from GPS
Farm Belt are presently experiencing tight the decision making to project benchmarks for technology, for instance. You
liquidity.” Consider, too, how the purchase machinery investment and cost under a modi- don’t use as much seed and
will affect your operating profit margin. fied production system. “If, for instance, you’re fertilizer, for example. Yield
• Breakeven prices for crops. Because the thinking of switching to an organic production monitors, too, are helpful.
interest and depreciation resulting from system, which may require more tillage, bench- Somehow you need to figure
machinery purchases increase your cost of marks for both machinery investment per acre out how the benefit of the
production, the prices you need from crops and machinery cost per acre would go up,” says purchase will outweigh
increases. “Knowing your machinery cost Michael Langemeier. “Under an organic system, the higher interest and
per acre helps you manage enterprise cost the cost for labor would also likely go up. But depreciation cost.”
of production. If your machinery cost per revenues would also be higher. It’s important to
acre rises, you will probably have higher weigh the benefits against the costs.” Taking the time to
breakeven prices.” benchmark machinery
• Labor costs. An economic justification for Switching to a no-till system of production, investment and cost before
investing in machinery could be a potential on the other hand, could present potential cost buying equipment could
savings in labor. “Costs for machinery savings in both machinery and labor. • help you chart a course of
investment and labor are two benchmarks operation that sustains the
that are typically analyzed together. If farm’s financial resiliency.
machinery investment per acre is high, the
“In today’s environment,
22 Successful Farming at Agriculture.com August 2021 you don’t want to do
anything that’s going to
increase your breakeven
prices. You might consider
being extremely cautious
when thinking of buying
equipment.”
You can contact Michael
Langemeier at 765/494-9557
or via email at mlangeme@
purdue.edu.
Photography: Dave Mowitz
MACHINERY
The most accurate way to test
a hydraulic system is to use a
tester that reads pressure, flow,
and temperature.
cool the fluid so that it can
retain its viscosity while
reducing the possibility of
cavitation (fluid boiling
and turning to a gas) from
occurring.
When the hydraulic
fluid level is too low, not
only can cavitation occur,
but also the pump will
allow entrained air to enter
the system, which affects its
HYDRAULICS UNDER PRESSURE operation.
Entrained air consists of
bubbles that are immersed
in the fluid. These bubbles
Here are key how-to tips for testing any hydraulic system. don’t allow for a solid flow
of liquid.
By Ray Bohacz • Energy introduced to a hydraulic system A hydraulic pump that
in the form of flow and pressure will result is worn will usually have
ruth be told, most of us diagnose a in work or heat. both reduced pressure
hydraulic problem by first checking the • Hydraulic systems can multiply the work output and flow. It may
fluid level and then changing parts. If that needs to get done. have enough pressure
you throw enough expensive parts at and flow at one work
the problem, you are bound to fix it. A basic element of a hydraulic system is level, but when asked
Would you guess at a fertility program that there needs to be pressure and flow. to do more, the pump’s
for your crops or have faith in a doctor Without flow, there is no pressure. And output and pressure skews
who just shoots from the hip? pressure is created by forcing working dramatically.
That is not my approach with hydraulic fluid through an orifice.
issues, and it shouldn’t be yours, either. Thermal Expansion
If you want results, you need to make Getting to the Source of the Issue nother issue with
a hydraulic fluid is
decisions based on facts – not luck. hydraulic system consists of a pump, thermal expansion. This
Even with the integration of electronics lines, connection valves, and the
into modern machinery, hydraulic system hydraulic cylinders. Any one of these is especially a change for a
designs have essentially remained the components can cause an operating hydraulic system that has
same. This is due to the simplicity and problem. Since pressure and flow are key removable attachments that
effectiveness of basic hydraulic principles. areas of a hydraulic system, the pump is are at rest.
They are as follows: where it all begins. When a hydraulic system
• A liquid has no shape of its own. Working in conjunction with the pump is operating, pressure surges
• Liquids are considered incompressible. is the fluid, its chemical composition, and its are controlled by relief
• Liquids transmit pressure in all condition. The proper hydraulic fluid that valves. But if the implement
directions and can do this at a right angle. is worn out, contaminated with dirt, and is being stored in a hot
• Liquids under pressure will flow to the diluted with moisture from condensation environment, pressure can
path of least resistance. will cause the system to respond poorly with build up in portions of the
• Liquids that flow across an orifice create no clear-cut predictor of a symptom. system that are blocked.
a drop in pressure proportionate to the A hydraulic system will build heat Testing by Hose End
flow and inversely proportionate to the during its operation. In most larger Chamber, Inc. with a data
area of the orifice. applications, there will be some means to recorder has revealed
Photography: Manufacturers August 2021 Successful Farming at Agriculture.com 23
MACHINERY
continued
The addition of expansion chambers to an implement’s hydraulic
system saves that system from seal stress due to thermal expansion
of the fluid when the implement is detached from a tractor.
pressure as high as 4,200 psi in a tightly system tester that reads pressure, flow, and efficiently and trouble-free,
sealed system of an implement that was temperature. apply these simple steps.
not attached. This is why a hydraulic
cylinder becomes activated while being Depending on the design of the machine • Install an expansion
unhooked from a tractor. and system being tested and the design chamber on all at-rest
of the test tool, the system tester needs to implements. This preserves
There are expansion chambers that can be installed in series with the hydraulic piston seals and lines.
be connected to the unhooked lines that system. Then a load would be placed on the • Use the manufacturer’s
will stop the phantom movement of a machine’s hydraulic system while a setting recommended fluids. Avoid
piston and save the system from seal stress on the tool or the unit is operated normally generic, fits-all brands.
due to thermal expansion of the fluid. and readings are observed. • Change the filters and use
These expansion chambers are inexpensive either original equipment
and a worthwhile addition for all your The only way any hydraulic system can or brand-name parts.
implements. be checked for performance is to monitor • Cover all ports when not
pressure, flow, and fluid temperature connected and wipe clean
Diagnosing a System and compare those readings to the before connecting.
manufacturer’s specifications. • Be mindful of leaks and
o properly diagnose a hydraulic system, worn hoses.
you need data. Even when there is no Another real-life benefit of a three-in-one • Perform annual hydraulic
apparent problem with a system, it is tester is its ease of connection and the ability fluid analysis.
wise to do an annual system performance to load the system from the tool. Don’t • Execute a yearly
check. However, this does not mean try to get by with a separate pressure and performance check using
simply pulling a lever and checking to flow gauges. These devices are awkward a tester that registers flow,
see that the appropriate component, to connect and if not used simultaneously, pressure, and temperature.
such as a cylinder, will move. You need their readings are worthless when testing a • If there is a problem,
pressure, flow, flow at operating pressure, system that is not operating properly. obtain test readings with
temperature, and, in some applications, the tester. Do not guess at
operation at different pump speeds to Human nature being what it is, if the problem and throw
diagnose a system. the tool is burdensome to connect, you parts at the issue in an
The most efficient and accurate way to will convince yourself that aspect of the attempt to fix it.
accomplish this is to invest in a hydraulic hydraulic system is fine, possibly leading to
a misdiagnosis.
To make sure all hydraulic systems work
24 Successful Farming at Agriculture.com August 2021
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CONSERVATION
GET A ‘BIRD’S-EYE VIEW’ veys for the Department of
OF YOUR FARM the Interior. These surveys
are done annually in June
For Nebraska farmers Don and Janis Paseka, during the prime nesting
birding and farming go hand in hand. season. A route is established
along a 25-mile random
By John Walter SF: What’s your history with bird watching? stretch of road and starting
one half hour before sunrise.
on and Janis Paseka describe their How did you get interested in it? The protocol is to stop every
eastern Nebraska farm as a “typical half mile for three minutes
dryland grain farm” for their area. Janis: For starters, we’re birders, not bird and count all the birds that
The operation includes a corn- watchers! It seems like a trivial detail, but you can see or hear.
soybean rotation, pasture, and CRP. I think what it gets at is our intent and the
But, what’s not so typical is their intense depth of our interest. We don’t just want We’ve learned that even
involvement in bird watching, or “birding,” to put out a backyard feeder and watch the in intensively farmed areas,
as they prefer to call it. birds. We want to observe changes in bird a few species still manage
Their land conservation practices reflect behavior. For example, why do we seldom to nest. But once you start
their interest in providing habitat for birds have black-capped chickadees on our farm adding a little habitat
and other wildlife. After years of no-till when they used to be common here? (West like a few shrubs or trees,
corn and reduced tillage for beans following Nile virus, in part.) a creek or slough, some
corn, they switched to narrow-row, no-till grass, or even a farmstead,
beans in 2004 and have been 100% no-till My mother was a birder, so I got into it the numbers and diversity
ever since. The CRP land, 50 acres, is spread early. As a teenager, I didn’t think it was increase dramatically. Birds
over 11 tracts to pinpoint land either too wet cool to bird, but as a young adult I became are out there trying to make
or highly erodible to farm. The no-till and interested again. When Don got involved we a living off the land just
idled acres have paid off big time in bird had to purchase a second pair of binoculars like we are as farmers, and
terms, as the Pasekas have been able to list so we could both get a better look at what maybe we should show a
more than 200 species on the farm. was out there. little more empathy.
In an interview with Successful Farming®
magazine, the Pasekas discuss their interest SF: What do you think birding tells us about SF: How many species have
in birding and how it might actually interest
other farmers. a farm, or any landscape for that matter? you counted on your farm?
Don: Janis and I both enjoy doing birding Any favorite sightings?
citizen science. For more than 20 years we
have volunteered to do breeding bird sur- Janis: Our farm list now
totals 225 species. One of my
favorites is the scissor-tailed
flycatcher I saw on our lane
in May of 2012. It’s a southern
species that can sometimes be
found in the southern tiers of
Nebraska counties, but seeing
it on our farm was a real
treat. It’s also a bird Don has
never forgiven me for seeing.
He was planting beans on a
field 5 miles from home. I
called him right away, but the
bird was gone by the time he
got home, so he missed it.
Another outstanding
memory is from late
September of 2018. We
happened to glance out
the kitchen window and
saw a “kettle,” a swirling
Bonus Successful Farming at Agriculture.com August 2021 Photography: Courtesy Don and Janis Paseka
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stronger and delivering more of the potential I expect out of every acre.
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NK-21037-SF-202108-FP
CONSERVATION Our ‘Century Farm’: 100
Bird Species & Counting
continued
B ill Flack, a longtime birder from
group of migrating hawks. We are low commodity prices. Why farm Kearney, Nebraska, has documented
volunteer hawk watchers at a nature those wet spots or keep filling in 100 species of birds on my family’s farm in
center in western Iowa, so we are gullies and lose money when you Buffalo County, Nebraska. Bill keeps a strict
used to identifying and counting can get paid a couple hundred bucks routine on his visits, noting the start time,
migrating raptors. This group was per acre annually to take it out of time elapsed, weather conditions, his route,
composed of broad-winged hawks, production for 10 years? the birds’ activities, and the numbers of spe-
but the amazing thing was that it cies and individuals. He’s learned to identify
was followed by another group and SF: Why would you encourage farm- birds by subtle features, the shape of the
another after that until it became beak, bars on the wings, length of the tail,
a stream of hawks that went on ers to watch birds? How should they the calls and songs, and so on. He’s found
for hours. The broad-winged small grassland birds like sedge wrens,
hawks were joined by Swainson’s get started? Savannah sparrows, and American gold-
hawks, and by the time the nearly finches. Overhead, he spots sharp-shinned
unbelievable stream of hawks finally Don: I don’t know of a farmer who hawks and great blue heron. There are also
passed by or landed in trees to spend doesn’t enjoy being outdoors, and Bell’s vireo, yellow warbler, dickcissel, mag-
the night, we had estimated an every farmer feels a connection to nolia warbler, and long-billed curlew.
astounding total of 14,000 hawks on nature and the seasons. Birds are a
their way south for the winter. This part of that. We tend to notice big How to be a birder on your farm:
is more hawks in one afternoon than birds first. When you hear them
are counted in an entire fall season at calling and you look up to see skeins 1Pay attention to the rough edges. Field
the hawkwatch where we volunteer. of snow geese as they fly north in borders, rogue fence-line trees, and
early spring, you may notice that
SF: What practices on your place some are much smaller than the patches of unmown grass make great bird
others and wonder why. It turns
most benefit the birds? out that they are a separate species habitat. Abandoned barbwire fences make
called Ross’s goose, which used to be
Don: No-till is definitely a big uncommon. perches. Diverse habitats will host more
plus for birds. Several species
that historically nested on the Or you’re combining beans in species.
prairie will now nest in corn and the fall and you notice a few hawks
soybean stubble that has not been circling the combine and landing 2 Plant a patch of native grass. Prairie
disturbed. Four that come to mind now and then to seemingly watch bird species are in decline, and you
are killdeer, upland sandpiper, your progress but then you notice
horned lark, and vesper sparrow. that they don’t look like the red- can give them a boost. Small areas of prairie
They seem to tolerate a pass with a tailed hawks that we’re used to
sprayer, while even one tillage pass seeing. Besides not having a red grass strips can mean a twofold increase in
would definitely destroy nests and tail, they fly with a slight dihedral
nestlings. of the wings and lack the creamy bird species and abundance.
white belly with a dark belly band
The CRP program is also of your garden variety red-tail. It 3 Try no-till. Species that historically
great for birds. Not only have the turns out that Swainson’s hawks nest nested on the prairie will nest in undis-
numbers of game birds (wild turkey, in western grasslands and migrate
bobwhite quail, and ring-necked south to spend their winters in turbed corn and soybean stubble.
pheasant) greatly increased, but Argentina, and hey, their primary
many song birds also use this habitat, diet is grasshoppers! Interesting! 4Get some birding gear. You can watch
especially the areas with the springs birds without any equipment, but a pair
that you had to normally farm If your curiosity is piqued,
around. Some species that come you start to notice smaller birds, of binoculars will reveal surprising, vivid de-
to mind are song, lark, field, and especially if they have some color. At
grasshopper sparrows, dickcissel, this point you need a field guide and tails and can be handy for general farm use.
and red-winged blackbirds. In a pair of binoculars.
addition, hawks like to hunt the 5 Start a list. Keep a notebook and pen
small mammals that live there. As a farmer, you have an handy. Set a goal to identify a dozen
advantage over other birders.
The philosophy of “farm Every time you leave the house and bird species over the next year. Even if you
the best and save the rest” is go about your daily routine you can
especially relevant with today’s be birding and see some interesting don’t know their names, you can appreciate
birds that other people have to
hunt for. their individual traits and behavior.
6 Buy a bird field guide. Smartphone
birding apps, like Merlin, can help with
identification and other info. Learn their
calls and songs.
7 Watch the sky. During planting and
harvest seasons, watch for spring and
fall migrations. This is when you’ll see the
most variety of birds on your farm.
8Share your findings. Sign up your
farm on eBird (ebird.org) and contrib-
ute your findings to a global database. All
you have to do is list the birds you’ve seen
during a given period. Some of the most
valuable historical information about
bird occurrences are from folks who
keep detailed lists of their own farm, ranch,
or yard. • – John Walter
Bonus Successful Farming at Agriculture.com August 2021 Photography: John Walter
TOOLS FOR
FARMERS
You can now check commodities
prices (CBOT or local cash prices)
on a smart home device.
you want, which contract
month, and then ask if you
want a local cash price (by
ZIP code).
On Google, you can
launch the Action by saying,
“OK, Google, speak to Suc-
cessful Farming Live.” It’s
that easy.
The Action will walk you
through which commodity
price you want, which con-
tract month, and then ask if
you want a local cash price
(by ZIP code).
GET COMMODITY PRICES Here Are Devices
ON YOUR SMART DEVICE That Can Access the
New Skill/Action:
mazon Alexa: Amazon
Echo, Echo Dot, Echo
Show, Echo Spot
• Google Assistant: Google
Home, Google Home Hub,
Google Home Mini, Google
Nest Hub
Successful Farming offers a new way to connect with farmers. Successful Farming
Audio Network
“Successful Farming
By Dave Kurns, Editorial Content Director Skilled Creative, a software Live” is just one of
[email protected] | @davekurns Get “Successful developer that has built Get the Google several audio prod-
Farming Live” dozens of voice-activated pro- Home version ucts from Successful
hecking local cash prices for grams for many brands. of “Successful Farming. Check out:
many commodities just got from Alexa Farming Live”
easier — now you can simply here. What are people listening • Successful Farming
ask smart home devices to on their smart speakers? here.
Amazon Alexa or Google Music, weather, and news are Podcast — includes
Assistant. common topics — all relevant regular interviews and
features.
“Successful Farming Live” is a new Alexa to farmers. In the new “Successful • Successful Farming
Skill and Google Action that gives you local Farming Live” program, the commodities Daily — a podcast of “Three
cash prices and the price of many commodi- you can search for include corn, soybeans, Big Things” you need to
ties on the Chicago Board of Trade from the soybean meal, soybean oil, wheat, lean hogs, know about agriculture each
CME Group. live cattle, and feeder cattle. The service also morning, available through
Why launch a voice-activated program? includes tips from Ag Growth International multiple podcast providers
Research shows there are more than 150 (AGI). or as a flash briefing through
million voice-activated devices in the United Alexa and Google.
States, and an estimated 50% of internet How to Get Started • Successful Farming Radio
searches are done by voice. n any Alexa device, just say, “Alexa, open — a twice-daily over-the-air
Farmers need access to hands-free tools, Successful Farming Live.” The Skill will radio program on more than
so Successful Farming created this tool with walk you through which commodity price 80 stations.
Photography: Manufacturer August 2021 Successful Farming at Agriculture.com 25
WEATHER
TRENDS
The good news for farmers is
the Corn Belt should be dry for
harvest; in the South, however,
farmers will face a wetter
harvest and more hurricanes.
harvest conditions expected
in September and October,
most of the harvest should
be wrapped up by then.
High Hurricane Risks
n the heels of 2020’s very
active Atlantic hurricane
season, the 2021 season
brings no hope of reprieve.
The greatest risk for a
land-falling storm will be in
Florida, the eastern shores
of the Gulf Coast, and the
Southeast Coast.
The Weathertrends360
year-ahead hurricane
outlook issued last fall for
2O21 HARVEST OUTLOOK the 2021 season calls for at
least 23 named storms, 11 of
which would be hurricanes.
Expected warm and dry weather during harvest Of those 11 hurricanes, five
presents few headwinds. are expected to reach major
hurricane status (category
3 or higher; winds greater
By Krissy Klinger panding drought conditions across portions than 110 mph).
of the Corn Belt during 2021. The climatological peak
n a growing season fraught with drought
conditions in portions of the northern Corn Drought becomes less of a concern during of the Atlantic hurricane
the harvest season as the damage to crops season occurs in mid-
Belt, 2021 has certainly been challenging by drought is already done. Instead, warm September. Storms are more
for crop yields. Fortunately, the weather and dry weather allows for a speedy harvest, likely to form during this
is shaping up to be cooperative during the
2021 harvest, with warm and dry conditions limits fungus growth, and reduces grain- time; however, storms can
expected. Areas closer to the coast may see drying costs. Additionally, the sooner the form anytime throughout
more risk: Another active hurricane season crops can be harvested, the lower the the hurricane season,
is expected. risk that crops will endure a killing which officially runs
freeze from an early winter. from June through
Unfavorable Growing Season Weather November. As of
y early summer, 60% of the United States Harvest Weather Forecast early summer 2021,
was in dry to drought-like conditions — three named storms had
up from 45% in 2020. This sent grain crop fter a challenging growing season already formed in the
for many, especially in the northern Corn
conditions into a downward spiral. Hopes Belt, Weathertrends360 forecasts that this Atlantic basin.
for rainfall were shattered several times harvest season will be the warmest in five
during the season with overzealous short- years and the driest in eight years. Drier Learn More
range weather models predicting wetter weather will present few hurdles for harvest A FarmCast subscription for
weather, only to see those predictions drying activities, and warmer weather will reduce Weathertrends360 forecasts
up as time progressed. However, long- the risk of early frost. There will be some looking out up to 365 days can
range forecasts, such as the one produced snow risk by the first week of November be found at wt360.com/ag for
by Weathertrends360 in 2020, predicted ex- in the Northern Plains, but with favorable $369 a year.
26 Successful Farming at Agriculture.com August 2021 Illustration: Weathertrends360
DRAGOTEC.com
DRAGO GT • DRAGO SERIES II
28 Successful Farming at Agriculture.com August 2021 Photography: Courtesy Mid-Iowa Cooperative
REBUILDING A
YEAR LATER
BY EMMA HENNING
DIGITAL CONTENT EDITOR
The Mid-Iowa Cooperative
Midway, Iowa, location following
the August 10, 2020, derecho.
August 2021 Successful Farming at Agriculture.com 29
enerations of farmers stick together and bring relief to the “We strive to adjust and
will remember the west-central part of Iowa, which was resolve claims accurately
derecho that tore suffering from extreme drought. However, and as quickly as possible,”
across the Midwest on near Carroll, Iowa, it “hit a very unstable says Chad Zierke, vice pres-
August 10, 2020. The atmosphere, and that’s where it exploded.” ident, commercial claims
storm compounded of Nationwide Insurance.
troubles for a U.S. farm Glisan says he knew it was coming about “The derecho was devas-
economy already bat- an hour and a half before it happened. “The tating to so many farmers,
tered by extreme weather, National Weather Service issued a rare alert and we’ve been working
the U.S-China trade war, labeling the storm system a particularly around the clock to help our
and the COVID-19 pan- dangerous situation,” he says. members rebuild.” As of
demic. Today, farmers and June, Nationwide reported
cooperatives are continuing Who was most affected? nearly 85% of derecho-relat-
rebuilding efforts while also ed claims had been resolved
dealing with volatile markets he Iowa Department of Agriculture or were in the process.
estimates that 3.5 million acres of corn
G andsupplyissues. and 2.5 million acres of soybeans grown Ben Olson, Vinton, Iowa
What happened within a 36-county area across the central
August 10, 2020? part of the state were hit the hardest. Ben Olson was able to
ė he derecho was not quickly build back his cattle
in the forecast,” says According to the National Weather and row crop farm south
Justin Glisan, Iowa state climatologist. The Service (NWS), eastern Nebraska, Iowa, of Vinton in eastern Iowa,
storm system began early the morning of Illinois, Indiana, and southern Wisconsin despite loss to 35 structures
August 10 in southern South Dakota, he were the most affected. The greatest in four feedlot locations.
says. By 9 a.m., it had crossed the Iowa/ damage was found in central and eastern
Nebraska border and severe thunderstorm Iowa where wind speeds measured 126 “All the buildings and
warnings were issued. mph during the storm; post-damage surveys sheds were either complete-
Glisan hoped the storm system would estimated some areas likely experienced 140 ly destroyed or had minor
mph winds. issues. Our home had minor
The aftermath of issues, but all of our bins
Ben Olson’s combine Destruction was so severe, insurers are were also damaged.”
following the August still processing claims.
10, 2020, derecho. Olson’s 2013 machine
shed collapsed and crushed
a combine, tractor, and grain
cart, all waiting to be used
the next month for the 2020
harvest.
“On top of not only fixing
buildings, sheds, and bins,
we had to get a combine and
corn head purchased to start
harvesting in a few weeks,”
says Olson. “It was one of
those days you never forget
and hope you never have to
live through again.”
Cattle barns were rebuilt
after harvest and throughout
the winter. In June, they
finalized their grain bin
facilities.
“Our goal was to be com-
pletely rebuilt by Labor Day,
so we’re getting pretty close
with just a few minor repairs
left to do,” Olson says. “We
were very proactive and got
rebuilds, equipment, and
parts ordered right away.”
30 Successful Farming at Agriculture.com August 2021 Photography: Courtesy Ben Olson, Heartland
Cooperative; Ryan Vavroch
Brad Hertle, Newhall, Iowa A drone image
captured the damage
Nearly 20 miles south of to bins at the Malcom,
Olson, cattle and row crop Iowa, Heartland
farmer Brad Hertle lost his Cooperative location
home plus all his bins, two following the derecho.
machine sheds, and other
buildings. we were as we really had major damage only was lost in the estimated $11 billion in dam-
to our grain bins,” he says. age to bins, buildings, crops, and more.
“We’re in the process
of rebuilding our home. Vavroch’s corn crop was zeroed out for Two cooperatives that suffered serious
However, one machine shed the 2020 harvest, but he was able to combine damages were Heartland Cooperative and
is up as well as a hoop build- beans. He says volunteer corn has really Mid-Iowa Cooperative.
ing and cattle shed,” Hertle become an issue this year.
says. “There’s still quite a bit Heartland Cooperative
left to do and clean up, but “We raise seed beans and non-GMO soy-
we’re almost done.” beans, so we have to be really careful when Heartland Cooperative is a farmer-owned
it comes to volunteer corn,” he says. “We’re co-op with more than 70 locations across
On the positive side, having to make quite a few passes in the central Iowa, stretching 200 miles from
Hertle was able to harvest all fields to spray for it because there’s just so the Missouri River to east-central Iowa.
of his 2020 crops. much out there.”
The co-op sustained
“It was a slow, painful Cooperatives Ryan Vavroch’s damages at 45 of its
process, but with the way Hit Hard in cornfield following locations, with 10
the grain markets have gone Iowa the August 2020 of those classified as
this year, I feel lucky we did derecho. severely damaged.
harvest,” he says. “But we AŒcrop produc-
also didn’t have any bins tion survey from “There are close to
to store the harvest, so we 200 bins across our
bagged all of it.” the USDA National locations that were
impacted with over
Ryan Vavroch, Agricultural Statistics 40 million bushels of
grain storage lost,”
Elberon, Iowa Service showed 13.6 says Tom Hauschel,
CEO of Heartland
Thirty minutes east of million acres of corn Co-op. “We have 120
Hertle’s operation is row bins that we’re just
crop farmer Ryan Vavroch, were planted across getting started on,
who suffered similar dam- and the repairs and
age. Vavroch farms 1,400 the state of Iowa in rebuilds are ongoing.
acres of a corn-soybean When we think we’re
rotation alongside his dad 2020. Of those acres, done with one location, we find more struc-
near Elberon, Iowa. tural damages.”
12.9 million were Hauschel says Heartland handled the
“The day the derecho 2020 harvest for customers at several loca-
came through, we were in harvested, 200,000 tions by either building bins back quickly or
the process of putting up piling crops on the ground.
another bin on our farm,” were chopped for The Chelsea, Iowa, location that
says Vavroch. “There was a
company representative at silage, and more than
our farm that day finalizing
plans for the dryer, so we 440,000 were aban-
were able to order new bins
that same day.” doned — the largest number of abandoned
Although Vavroch lost a acres since the floods of 1993.
total of nine bins on various
properties, he spent the One of the biggest concerns for these
majority of his time after
the storm helping neighbors farmers and many others was the damage
who lost more.
to large crop storage facilities just before
“I knew neighbors who
had lost their homes and the 2020 harvest. On-farm and commercial
machine sheds, so they were
in more need of help than grain storage for about 100 million bushels
August 2021 Successful Farming at Agriculture.com 31
was severely damaged will not be rebuilt, be full, and we would go into the next one. grain storage in 75 days,”
and Hauschel says the board is evaluating We had crews working around the clock to Kempf says. “It’s still a tough
whether other locations are worth repairing rebuild shortly after the storm.” year in regard to the amount
or if they should be closed. of corn bushels lost, but
Kempf believes jumping on the decision farmers in our area are
“Our expectation for revenue losses to rebuild quickly allowed Midway to cap- optimistic for the 2021
within the company are going to approach ture bushels where others did not rebuild. harvest.”
$40 million,” Hauschel says. “We’re well
into $25 million, and by the time we get to “We rebuilt about 4 million bushels of
October, we expect to approach that $40
million mark.” A drone image captured
the bins at the Elberon,
Mid-Iowa Cooperative Iowa, Heartland location
following the 2020
Mid-Iowa Cooperative has 14 grain facilities, derecho.
primarily located in the northeastern part
of Iowa, where the strongest winds of the
derecho hit. Eight locations were hit severely
with two destroyed, according to Bruce
Kempf, COO of Mid-Iowa Cooperative.
The Midway location, outside of Toledo,
Iowa, sustained the most destruction with
five large bins severely damaged or leveled.
Only one bin was left standing, but the bins
were rebuilt quickly, and the facility was
operational for the 2020 harvest.
“The bin left standing allowed us to start
bringing in beans for the fall,” Kempf says.
“As one bin was jacked, the other one would
The rebuilt bins in
May 2021 at Mid-Iowa
Cooperative’s location
in Midway, Iowa.
Emma Henning Photography: Courtesy Heartland Cooperative,
Digital Content Editor for Mid-Iowa Cooperative
Successful Farming magazine
and Agriculture.com covers
business news, young and
beginning farmers, and weather.
32 Successful Farming at Agriculture.com August 2021