Dairy Night at Mayo Field with the Honkers

Milking cows in the middle of a baseball game?  As a farm boy and lifelong baseball fan, there was no way in the world I was going to pass that up.

Dairy night at the Ballpark in Rochester, Minnesota

Mayo Field in Rochester, Minnesota, was home to Dairy Night at the Ballpark, featuring the 22nd annual cow milking contest to help promote agriculture. (photo by Chad Smith)

The Rochester Honkers baseball team was home to the St. Cloud Rox in Northwoods League baseball on Friday night, July 8.  The night’s sponsor included the Olmsted County American Dairy Association, with help from the Minnesota Farm Bureau Federation.  It was Dairy Night at the ballpark with an unusual way to promote agriculture.

The highlight of the night was a cow milking contest that took place at the end of the first inning.  And this wasn’t a new idea, either.  For over 20 years, the Honkers have been hosting an annual milking contest.  This year’s edition featured coaches from both teams in a one-minute, old-fashioned milking contest.  There wasn’t a milking machine to be found for miles.  This one was done by hand.

Dairy Night at the Ballpark In Rochester, Minnesota, sponsored by the Olmsted County ADA

St Cloud Rox Assistant Baseball Coach Phil Imholte is ready for the Dairy Night at the Ballpark main event, a cow milking contest intended to help promote agriculture at Mayo Field in Rochester, Minnesota. (Photo by Chad Smith)

Honkers Manager Trevor Hairgrove was the Rochester entrant and Rox Assistant Coach Phil Imholte was a good sport by jumping into the contest for St. Cloud.  Hairgrove was the eventual contest winner in spite of the fact that his cow was much more agitated and jumpy than Imholte’s.

“It was the 22nd annual Cow Milking Contest,” said Minnesota Farm Bureau Southeast Area Program Director Katie Brenny.  “It was put on by the Olmsted County American Dairy Association and we were glad to join them and help promote agriculture.”

The cows were on loan from the Shea Dairy farm near Viola, Minnesota.  June was officially Dairy Month across the country, but they wanted to continue to promote agriculture with the Rochester Honkers here in early July.

A dairy cow is jumpy while getting ready for the Dairy Night at the Ballpark event in Rochester, Minnesota.

A dairy cow on loan from the Shea Dairy farm near Viola, Minnesota, isn’t excited about being in the Dairy Night at the Ballpark milking contest on Friday night, July 8, at Mayo Field in Rochester, Minnesota. (photo by Chad Smith)

“It’s important to do this because consumers have questions,” Brenny said.  “They want to know where their food comes from and how it’s grown, and we hope they also want to know the people who are producing their food, getting up early in the morning to do the chores and drive the tractor.”

If agriculture doesn’t promote itself, she said consumers with questions typically get their information from non-factual sources .  Farmers want to tell their stories, similar to the way a teacher wants to tell others what they teach or doctors want to talk about what they do.

“There’s always work to do to tell our story,” she said.  “Agriculture changes almost every day, and if we’re not sharing the change, no one will know what we’re doing.  For instance, 97 percent of our farms are family owned and we love to share that message with others.  Farmers are more than willing to answer any questions about what they do.”

Heading home after Dairy Night at the Ballpark in Rochester, Minnesota.

Heading home to the dairy farm after the Cow Milking Contest at Mayo Field in Rochester, Minnesota, on Friday night for Dairy Night at the Ballpark, sponsored by the Olmsted County American Dairy Association (Photo by Chad Smith

Katie is the Southeast Area Program Director for the Minnesota Farm Bureau Federation.  She spends a lot of time keeping things organized for Farm Bureau members in this part of the state.

“I work with all 11 counties down here in the southeast,” Brenny said, “doing anything from working with our elected officials on Ag policy to consumer events such as tonight, partnering with Ag commodity groups, county fairs, Ag in the Classroom, and more.  We were just at the Rochester Farmer’s Market last weekend and doing all kinds of events to promote the voice of agriculture.”

Brenny and some volunteers spent some time Thursday at the Ronald McDonald House in Rochester.  Some of the pictures can be found here.

In addition to the dairy contest, there was some pretty good baseball too as you’ll see in a few highlights I’ve put together here.

Checking out the Friendship Wagon Train in Rushford

Talk about getting some sun this weekend.

Friendship Wagon Train

One of the many wagon trains parked in Rushford on Sunday night during a stopover for the 28th annual Friendship Wagon Train which is touring southeast Minnesota to raise funds for Camp Winnebago. (photo by Chad Smith

After spending some time with the wife and one of my many sons at the Wabasha County Family Night on the Farm on Friday night, I hit the road for Fountain to take a few pictures of their Trail Days Festival for the Bluff Country Newspaper Group.  I’m really not sure which paper these pics go in, but that’s okay.  The company has six papers and their corresponding websites and plans to add more so that’s just more to keep track of.

I drove down to Rushford on Sunday night to check out the Friendship Wagon Train that was camping out in Rushford.  What a beautiful night it was!  In case you don’t know what it is, this Train and the folks that participate have a simple goal:  They want to raise money for a place called Camp Winnebago, which is just outside of Caledonia.

Friendship Wagon Train Rides again

After covering 15-20 miles a day on the Friendship Wagon Train, it was time to cool off the horses during a Sunday night stop in Rushford. The Wagon Train continues through the rest of this week

The camp does really great work with adults and children that have developmental disabilities.  They bring the folks down for a week at a time, so it’s a series of one-week camps for the adults and children to get outside and enjoy the outdoors, which may be something that the rest of us take a little for granted.

This wagon train has been raising around $30,000 a year for the last several years, and the money goes straight to the camp for what Wagon Master John Davis calls ‘camperships.’  They help to pay the way for someone who can’t afford it to come to camp.

Friendship Wagon Train

It takes a lot of people, vehicles, and livestock to put on a successful Friendship Wagon Train, seen here during a stop Sunday night in Rushford. They’re touring southeast Minnesota to raise funds for developmentally disabled adults and children. (photo by Chad Smith

Got to see John and the folks on a beautiful day in Rushford as they work to support a great cause.  I asked John what it’s like to travel for a week straight in a covered wagon?  He said, and I quote, “I can’t believe the divorce rate wasn’t higher!”  He was laughing as he said it.  You do spend a lot of time together with your spouse and the rest of the group, and the weather conditions may not always cooperate.  After all, “We don’t have any dang air conditioning in the wagon,” is how John described it.

Here’s a few of the pics I took Sunday night.  I’ll have the complete coverage of the event this week in bluffcountrynews.com and the Tri-County Record.

 

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Friendship Wagon Train

It’s time to get some shade and rest during an overnight stop in Rushford for the Friendship Wagon Train, which is on tour around southeast Minnesota to raise funds for scholarships to Camp Winnebago. (photo by Chad Smith)

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Friendship Wagon Train

The livestock gets a break on Sunday night from the Friendship Wagon Train during a layover in Rushford. (photo by Chad Smith)

 

Ag businesses working hard to find labor

The nation’s unemployment rate remained steady through January at 4.9 percent. The US Department of Labor said over a half million workers were discouraged, meaning they had quit looking for work because they believe no jobs are out there for them.

Businesses across the agricultural spectrum want those folks to know there are jobs out there. Ag is having an especially hard time finding skilled labor, and businesses in Nebraska and Kansas are taking some unusual steps to find the help they need. Those steps include tuition reimbursement for students as well as hiring their first corporate recruiters to build relationships with those students.

Ag businesses working hard to find skilled labor

Landmark Implement of Nebraska and Kansas is taking unusual steps to overcome a serious shortage of skilled workers in the Ag labor force. (Photo from Twitter.com)

“My responsibilities are twofold,” said Deanna Karmazin, the new Corporate Recruiter at Landmark Implement, a John Deere dealer. “We have 17 dealerships across Nebraska and Kansas, and I’m trying to fill our open positions. Those positions include service techs, people at the parts counter, and people to work in wash bays, do the maintenance, and such.

“The second part of it will be to work with high school Ag programs and tech programs across Nebraska,” Karmazin said. “We have to cultivate a workforce. I’m trying to identify kids that would like to enter the field of diesel technology, or precision farming, get them under the Landmark umbrella, get them sent off to school and guarantee them employment.”

Deanna knew going into her job that labor would be hard to find. What she didn’t realize is that there just aren’t many young people that understand agriculture.

“You might have some that know how to work on engines,” she said, “but they really don’t understand what a tractor or combine is. They may not even understand the agricultural lingo.”

Stories abound regarding the “graying of production agriculture, i.e. farmers.” But even businesses that serve Agriculture are having a hard time replacing some of their older workers when they decide to step away.

“It’s been very tough for us to find skilled labor,” said Rick Kloke, the Corporate Service Tech Supervisor at Landmark. “In a lot of ways, it’s one of the biggest things that limits us in terms of being more productive. It’s not tooling or internal resources, it’s just the manpower to get jobs done.

Ag businesses working hard to attract skilled labor.

250 High school students exploring careers as John Deere technicians at SCC Milford, Nebraska. (contributed photo)

“In south-central Nebraska (Hastings dealership,), we tend to bring in people with strong agricultural backgrounds,” Kloke said. “We’ve lost a fair amount of guys who want to go home and see if they can make things work on the family farm.”

He added, “Some guys are successful, but some are back within a few years. Losing guys will create a big void for us. Even the guys that come back have fallen behind after a few years because the technology has changed so much.”

As a corporate recruiter, Karmazin has a lot of tools she uses to develop relationships with people and organizations that can help her grow their workforce. Internet options for advertising jobs include their own website as well as careerbuilder.com. She said the rest comes from word-of-mouth. She said people in small towns generally have the best ideas about top potential candidates.

Chambers of Commerce within cities in Nebraska and Kansas also makes good sources, especially when they host job fairs.

“As our workforce has aged out, Ag hasn’t done a good job of succession planning for the next generation of workers,” Karmazin said. “Also, things have changed so much with tractors and other equipment running on computers now. We’re looking for a different type of laborer than in the past.”

Once the recruiting process singles out good candidates, Karmazin said Landmark Implement is taking another step to cultivate their workforce.

Ag businesses working hard to find skilled labor

Jim Cope is a senior at Springfield Platteview high school in Nebraska. He is one of the students LandMark is sponsoring through the John Deere tech program. He will start college in October.  (Contributed photo)

“We will sponsor them through the John Deere Tech Program at the Southeast Community College campus in Milford, Nebraska,” Karmazin said, “or anywhere there’s a John Deere tech program. They become certified John Deere technicians. They’ll be working on all the older and newer equipment, and have all the diagnostics for John Deere.”

She added, “Once they’re in there, they’ll understand all of the equipment from start to finish.”

Landmark will offer students a paid shadow experience. They’ll pay the kids for between 60–90 days to do career exploration to see if it’s something they want to do before they get into any of the tech programs in Nebraska or Kansas.

Students also get on the job experience and a paycheck while they go to school to learn. When they graduate, they’re guaranteed a job at any of the locations, plus, the company will help pay their tuition.

“We take their tuition (minus housing) and prorate it every month,” Deanna said, “so every month they work for us, they take off a part of that debt. If they stay for 36 months, 100 percent of their tuition will be paid off completely in three years.”

The program has been going on for a few years, and it’s been very successful so far.

“We’ve gotten some very good people out of it,” said Rick Kloke, “and several of them are destined to be more than shop floor technicians. I see some future leaders in that group.”

 

 

 

 

 

 

 

 

 

 

 

Kuschels Retire from National Committee at YF&R Conference

YF&R national meeting members

A strong group of Minnesotans attended the recent Young Farmer and Rancher Conference. Minnesota’s Miles and Sarah Kuschel recently completed a two year term on the national committee. (Photo from Facebook.com/MnFarmBureau

Young farmer leaders from Minnesota attended the American Farm Bureau Federation (AFBF) Young Farmers and Ranchers (YF&R) Conference held in Kansas City, Missouri, February 12-15. Miles and Sarah Kuschel of Cass County were among the nearly 1,100 participants who attended the conference.

This also marked the completion of the Kuschels term on the AFBF YF&R Committee. The couple held numerous responsibilities throughout the year, including assisting with planning and implementation of this year’s conference. Miles also served as vice chair of the committee this past year. The Kuschels served on the committee for two years and were recognized for this on February 14.

“We had a great time representing Minnesota on the committee. Thank you to everyone we were able to share this experience with, and those who helped us along the way,” said the Kuschels.

The AFBF YF&R Committee donated $500 to Bill Brodie of the All American Beef Battalion to aid in their efforts of providing steak dinners to service men and women and their families across the country. Brodie is a Vietnam Veteran who is passionate about providing something special for those who defend our country.

The Kuschels also visited the Ronald McDonald House with Miss America 2016 Betty Cantrell. The American Farm Bureau Foundation for Agriculture has partnered with Cantrell on her platform, “Healthy Children, Strong America.” The partnership is working with the American Farm Bureau Foundation for Agriculture book of the year, First Peas to the Table.

Collegiate Discussion Meet

Ethan Dado, University of Minnesota student from Amery, Wisconsin and winner of the MFBF Collegiate Discussion Meet, finished in the Sweet Sixteen of the National YF&R Collegiate Discussion Meet on February 14 competing against 52 other YF&Rs. Katie Schmitt, University of Minnesota student from Rice in Benton County, also represented Minnesota in the competition.

Attendee Highlights

Attendees heard from keynote speakers Jason Brown, former NFL football player; Roger Rickard, advocacy professional; Kelly Barnes, motivational speaker; and Miss America 2016 Betty Cantrell. Attendees also had the opportunity to tour the Kansas City, Missouri area.

Conference attendees included: Miles and Sarah Kuschel, Cass County; Amanda Durow, Dakota County; Pete and Jenni Henslin, Dodge County; and Collegiate Discussion Meet participants Ethan Dado and Katie Schmitt.

Minnesota_Farm_Bureau_Logo_345x143Minnesota Farm Bureau Federation represents Farmers • Families • Food is comprised of 78 local Farm Bureaus across Minnesota. Members make their views known to political leaders, state government officials, special interest groups and the general public. Programs for young farmers and ranchers help develop leadership skills and improve farm management. Promotion and Education Committee members work with programs such as Ag in the Classroom and safety education for children. Join Farm Bureau today and support our efforts to serve as an advocate for rural Minnesota, www.fbmn.org.

 

For more information on the Minnesota Farm Bureau log onto www.fbmn.orgwww.Facebook.com/MNFarmBureau or www.Twitter.com/MNFarmBureau.

SE Minnesota farmers have grain to sell

With the current lower commodity prices and no real significant bump in the short-term forecast, careful planning has become more important than ever for farmers to stay in business.

Balancing lower prices for products farmers produce against the fact that input costs to produce those products haven’t come down yet requires more juggling than in recent seasons. Among some of the more significant costs is land rental, which is squeezing the bottom line of renters all over Minnesota and across the country.

Farmers have grain to sell

Lisa Behnken is a crops specialist with the University of Minnesota Extension office in Rochester. (Photo from AgriNews.com)

“Boy, is that a difficult one (to control),” said Lisa Behnken, a Crops Specialist at the University of Minnesota Extension Service in Rochester. “Rents keep going up and it’s very hard to renegotiate to bring those costs back down. It’s certainly a big part of the equation.

The high costs of renting land may lead to some tough business decisions.   Farmers may shuffle some land around, or even let a particular piece of land go back and not rent it anymore.

“We’ll see if people can do that (make things balance out),” Behnken said, “or if they’re going to let land go and back away from it because they can’t afford that. You may see some land changing hands because of the cost.”

With corn and soybean prices in the tank, are there other opportunities farmers may be looking at for profit? What about small grains?

“It all goes back to where their markets are,” Behnken said. “We have a good group with Extension that do workshops on small grains here in southern Minnesota and a good group of core farmers that grow small grains. They’ve got markets that they’re working with and are locked into.”

She added, “It can be successful, but it’s not just something you’re going to jump into. We don’t have the sell-points here. You need to have convenient places where you’re going to market it to. They don’t buy at every single elevator. It doesn’t mean you can’t do it, you just have to get everything in order, from planting it to marketing it.”

Behnken, who received her Master’s Degree in Crop and Weed Sciences from North Dakota State University, said farmers don’t want to be caught with a lot of grain in their bins in the summer and nowhere to take it.

Speaking of grain stuck in bins, farmers in southeast Minnesota still have a lot of grain to move from the 2015 harvest. Low prices at harvest made farmers very reluctant to sell grain that wasn’t forward contracted.

farmers have a lot of grain to sell

While exact numbers aren’t available, Lisa Behnken of the University of Minnesota Extension office in Rochester said there is quite a bit of grain in area bins waiting to be sold. (Photo from brockgrain.com)

“There are definitely crops to be sold,” Behnken said. “Some probably go forward contracted, but farmers don’t forward contract everything. Prices were down at harvest, so farmers didn’t sell right then, so it goes straight in the bin.”

While it’s important for commodity farmers to get their books in order, it’s equally important for livestock producers to watch their costs too, thanks to a recent run of lower prices.

“Cattle prices are softer,” said Behnken, “but the good side of that is they’re feeding animals much cheaper feed. However, they’re end product has also come down in price too.”

Do lower cattle prices mean it’s time for America’s livestock farmers to start expanding the beef herd? She said it all depends on your books and cash flow that your banker sees in those books.

“It’s all about operating money,” Behnken said. “You still have to go to the bank and make this whole thing cash flow. If I’m in the market to buy some feeders, I still have to have the cash to buy those feeders. Even if a farmer is raising his own corn to feed the animals, he still has to have cash necessary to buy the feeders.”

Cash flow. It’s more important than it’s been in many years, and it’ll determine what kind of decisions farmer make this year, and whether or not they stay in business.

“For some, it’s where their debt load is at,” said Behnken. “What’s my percentage of debt? If you have a more solid equity base, that’s a little different than if you’re highly leveraged. Then, it’s a whole different ballgame.”

 

 

 

 

 

Why FFA and agriculture are the Best Things Ever

By: Talisa Smith

A recent article by PETA described FFA as “lame AF.” Now, I see more and more posts from people who used to be in FFA agreeing with PETA. You folks that changed your mind, I’m betting you only did it because other people did. That means you are not, and never were, a proud FFA member.

Let me start off by introducing myself. My name is Talisa Smith. I’m 16 years old, and from Fort Pierre, South Dakota. Right now I’m a sophomore at Stanley County High School. I have been a FFA member for three years now, and I can say I would never go back in time and change my mind about becoming one

I am my chapter’s reporter and am stationed by the flag when we hold meetings. Much as the flag covers the United States of America, I strive to inform every man, woman and child I can that FFA is a national organization. It reaches from the state of Alaska to Puerto Rico, and Maine to Hawaii. I am there to let everyone know what goes on in the chapter. So I’m going to tell you what FFA is to me and what my side of the story is.

Many people have read this article about how we are a lame organization. One thing that most people probably don’t realize is that those pictures they have are entirely out of context. What they said is wrong and they clearly don’t know what they are talking about.

In one point that they made, it states FFA teaches kids to raise animals and send them to the slaughterhouse to have them cut apart while they are still living. Well yes, these animals do die so that people don’t starve. However, the methods that they say they use to put the animals down are wrong.

In a slaughterhouse the animals are put down with a stun gun to the head because it’s painless to the animal and quick. The other way is they are put down is by a gas. To make sure that they are dead, workers will drain the rest of the blood so the animals don’t suffer. Then they are butchered for the meat so that the world can have food.

They had also mentioned that sheep tails are cut off and ears are pierced without using painkillers. Cutting the tails off is a process is called docking and it is for the sheep’s benefit. If we don’t do this, the tails would end up getting dirty and infection is a good possibility. We dock the tails so the sheep can stay healthy and not get sick. They don’t feel anything but a little pinch when they do this.  When we pierce their ears, it’s basically a small hole, just as cows get tags in their ear to tell them apart.

The next allegation is we steal calves away from their mothers. We bottle feed those calves instead of giving them milk from the cow. The milk we get from the cows is not just used for drinking. That is used for all sorts of thing like, cottage cheese, cheese, and ice cream. So if we take away that milk, you are going to take away ice cream. Do that, and you have to tell your kids that you are the reason that they can’t have any more ice cream. Now, to me, that just doesn’t sound right.

FFA and agriculture

Stanley County FFA chapter members volunteer to clean up local emergency vehicles as part of summer camp activities. (Contributed photo)

Another point in the article says that the skills needed to stand up and talk in front of a group are lame, uncool, and have no purpose in the world anymore. The article says people should just stick to their phones. What happens when you want a job and you can’t talk to someone in person? You can’t talk only through texting. I can tell you this: you will not get hired and you will not find a job if you can’t have a decent face-to-face conversation.

The article said it’s cooler to judge people instead of knowing different kinds of livestock and other animals. Well you are now saying that it is ok to belittle people and lower their self-confidence. FFA is trying to stop that in the first place.

FFA and agriculture

Talisa Smith of the Stanley County FFA chapter poses with the Peterson brothers, farmers who are nationally known Ag advocates. They made an appearance at a recent South Dakota State FFA convention. (contributed photo)

They had stated that it is better to be a follower than it is be different and stand up to be a leader. You are going to tell people that it’s better to act and follow someone than to stand up and be yourself? I am proud of who I am and I’m not afraid to stand up and be a leader that may change the world for the better.

Many FFA members take care of animals and know how to feed them and give them the right medicine so they don’t get sick. We want our animals to be the healthiest they can be. We take pride in this because we are feeding the world while doing something that we love to do. Some people are saying that’s dumb. You shouldn’t do that. Instead, be more like PETA and just talk about caring for animals, and not actually doing it. Well if nobody raises livestock, then what happens? We have no food if farmers just stop working. Great: We got everyone to stop like you wanted, but guess what? We have no food for anyone. Now what do you want us to do? We’ll see FFA members and the farmers they might grow up to be as where you’ll get your food from, so we need them.  Did you know that 1 farmer feeds at least 100 people, if not more?

 

FFA and agriculture

National FFA officers often take over local classes to teach life skills all FFA members can use. (contributed photo)

FFA doesn’t just teach you about agriculture. It teaches you life skills that you can use everywhere. You will meet great people along the way that you never would have met in the first place. There are 692,327 members right now, and 7757 chapters in the United States, Puerto Rico and the Virgin Islands. Those numbers are growing each year and I am so glad for that. Our mission is FFA makes a positive difference in the lives of students by developing their potential for premier leadership, personal growth and career success through agricultural education. And our motto is Learning to Do, Doing to Learn, Earning to Live, Living to Serve. As an FFA member I am proud to live by this with everything I’m doing. I don’t think that most people realize is that agriculture is everywhere and is in almost all the jobs that we have.

So the next time someone wants to say that FFA is lame AF and belittle FFA and agriculture, make sure you do some research on it so you know what you’re talking about. You are also offending everyone involved because you information is wrong and hurtful.

 

 

CoBank Report Predicts Easing Of U.S. Protein Glut

DENVER, Colo. (January 21, 2016) —The supply glut that plagued U.S. beef, pork and poultry protein markets last year and ratcheted down margins is expected to ease in 2016, according to a new research report from CoBank.

The bank, a major agribusiness lender, says leading indicators point to animal protein supplies moving toward a state of equilibrium, with protein stocks more in line with overall levels of demand.

Meat Protein supplies expected to ease this year.

Trevor Amen is a protein specialist at Cobank. He expects improving market conditions for US beef, pork, and poultry producers in 2016.

“It’s clear that in the coming year, the headwinds and adverse conditions created by excessive protein stocks are clearing,” said Trevor Amen, animal protein economist with CoBank. “Surprisingly strong U.S. consumer demand helped lay the groundwork for improving market conditions in the coming year, meaning the net trade balance is expected to shift toward growing exports and fewer imports.

“This is welcome news for U.S. beef, pork and poultry producers.”

On the Horizon
In the first half of 2016 protein exports are expected to remain somewhat of a challenge. “But conditions are predicted to improve over depressed 2015 levels due to a variety of economic factors,” added Amen.

Meanwhile, imports of lean beef should slow significantly and domestic consumer demand for beef, pork and poultry is anticipated to remain strong and supportive of prices. Supply imbalances have already begun the correction phase, with supply and demand expected to achieve equilibrium by about mid-year. The strength of consumer demand going forward will impact how much and how soon U.S. meat prices change.

For instance, meat demand in the restaurant sector continues to grow. The Restaurant Performance Index and the Expectation Index each indicate positive restaurant business conditions. Combined with lower gas prices, current consumer attitudes indicate a willingness to spend more at restaurants versus in-home meals during 2016.

Price outlooks are mixed:

  • Pork and chicken prices have an upside potential compared to last year’s low levels, based on adjustments made for future production.
  • Beef prices will likely remain under pressure for the next two years, however, as the industry is coming off cyclical highs of 2014.

Of course, optimism for 2016 should be tempered by the oversupply lessons of 2015.

“Total red meat and poultry production set an all-time high in 2015,” said Amen. “Combined with fewer exports and more imports, total domestic meat supplies surged by 4.4 percent, the highest year-over-year increase in 40 years.” That increase in supply translated to an additional 9 pounds of protein per person—historically, protein supplies rose an average of 0.8 pounds per person per year from 1960 to 2015.

As the market works through the recent protein oversupply hangover, the long-term outlook remains positive, especially with continued global middle class growth. “The increasing demand for a higher-quality diet likely provides domestic protein producers with significant opportunities in the next decade,” concludes Amen.

A synopsis of the 2016 Protein Demand Outlook Report is available at www.cobank.com. The full report is available to media upon request.
Meat Protein supplies expected to level off in 2016, thanks in part to surprising domestic demand and improving exports.

About CoBank
CoBank is a $110 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 75,000 farmers, ranchers and other rural borrowers in 23 states around the country.

CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture and the nation’s rural economy. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

For more information about CoBank, visit the bank’s web site at www.cobank.com.

Famers assessing their finances for 2016

January is a time when farmers are typically doing paperwork, looking back at 2015 ahead of the upcoming tax season.

What some may find is their books don’t necessarily balance they way they want. The good news is, it’s possible to make better decisions in a difficult Ag economy if you have a clear understanding of where you’re operation is at financially.

Rob Holcomb wants farmers to keep a sharp eye on their finances heading into 2016.

Rob Holcomb is a University of Minnesota Extension Educator, specializing in Ag Business Management over in the Marshall regional office. (Photo from extension.umn.edu)

“What I’m seeing happening right now is people in the habit of doing a FINPACK (software from the Center for Farm Financial Management) analysis,” said Rob Holcomb, Ag Business Educator for the University of Minnesota Extension Service, “including balance sheets and income statements, are really analyzing what happened in 2015.”

He added, “A lot of people are doing analysis, and unless they’ve got some special circumstances, farm returns are due on March 1.”

Dave Bau is encouraging farmers to get their finances in line.

Dave Bau is a University of Minnesota Extension Educator also specializing in Ag Business Management, and based in the Worthington office.

Looking ahead to 2016, Holcomb said the financial condition on farms is a mixed bag.

“We had people last year that had big trouble managing the tax bill,” Holcomb said. “What led to this challenge was the buildup of $8 per bushel corn, which caused more trouble than first thought. You hate to be negative about it, but I knew it would cause trouble down the line, and that’s what we’re finding now.”

He said certain farmers were doing a lot to avoid paying some taxes, like deferring income to the next year.

“They were also maxing out on pre-payments,” Holcomb said. “The problem is, a lot of farmers were rolling these massive deferred tax liabilities forward every year, even though they’re showing a loss. They may have a loss over the last couple years on their accrued farm income, but they still have this cash they have to deal with, because if they don’t do it, they have a monstrous tax bill.”

He said a lack of steady farm income leads to an obvious problem in that situation.

“The challenge is the recent lack of cash flow is such that they can’t afford to have that big tax bill,” Holcomb said. “In a sense, they’ve backed themselves into a corner with their tax problem.

“But that’s not everybody,” he added. “Some folks have been paying a little more as they go and didn’t have a big aversion to paying taxes, I think those folks are in much better shape.”

Holcomb said one of the big buzzwords in the Ag industry is working capital.

“It’s a current and intermediate cushion that the farmer has,” Holcomb said. “The more working capital you have, the better. Unfortunately, we’ve been burning some working capital over the last couple years. That’s probably the thing that lenders are getting the most squeamish about right now.

The lack of working capital on some farms is showing signs of getting serious.

“I got a call last week from a banker in my area that was asking about lender mediation,” Holcomb said. “That conversation can only be the result of one thing, which is a farmer out there that the bank is getting ready to pull the plug on.

“That means there are farm folks who could be in tough shape,” he added.

He’s especially worried about young farmers.

“When the $8 per bushel corn began coming down,” Holcomb said, “some of the younger guys were paying ridiculous land rental rates to try and get their hands on some acres to work. The problem is they’ve got the least ability to weather out low prices because they don’t have a lot of working capital. They have a cost structure that’s not sustainable.”

High land rental rates are squeezing farmers finances.

The high cost of land rental rates in farm lease contracts are putting a heavier squeeze on farmers and their financial bottom line than we’ve seen in several years. (photo from americasnewfarmers.org)

Rents are beginning to come down, but they have a ways to go to ensure profitability for both farmers and landowners.

Rent is the largest input cost for corn and soybeans,” said Dave Bau, University of Minnesota Ag Business Management Educator in Worthington. “Rents are going down, but at current corn and bean prices, they should be around $100 to $125 an acre. Even base rents on flexible leases are still much higher than this.”

There is still pressure on farmers for land rents to remain very high for at least one more year.

“Farmers are doing more and more flexible agreements with a base rent and additional rent if prices improve,” Bau said. “With other input costs not coming down significantly, break-even prices for corn are $3.80 to $4.00 for corn, and $9.50 to $10 for soybeans.”

Bau adds, “Cash prices currently are around $3.40 for corn, and $8.25 for soybeans.”

With this much economic gloom ahead, what’s the key to surviving the downturn in 2016?

“I think the number one thing is you have to get your cost structure in line,” Holcomb said. “Land rent is one of those high costs that can be negotiated. $400 land rent won’t work right now.”

One of the best things farmers can do is figure out where they’re at financially before they make decisions on the year ahead.

“The farmers I fear for the most are the ones that aren’t doing any kind of financial analysis,” Holcomb said. “They have no idea where they’re at. It’s a sad situation when they find out they’re in trouble, and it’s their banker that tells them”

He added, “The smart producers know where they’re at, and that can alleviate a lot of trouble.”

Farmers need to do a better job of marketing their products in 2016.

“There are marketing workshops going on around the state,” Holcomb said, “and I think it’s really important to look at that.”

 

 

 

 

 

 

Pork industry educates Subway on antibiotics

The Subway restaurant chain recently brought antibiotics in animal agriculture back into the national food discussion with an announcement about changes in how they source proteins.

In late October, Subway announced policy changes on it’s website, saying that the chain will only serve proteins that have never been treated with antibiotics. The transition is set to begin in it’s over 27,000 restaurants as early as 2016.

The animal agriculture industry recently met with Subway to ask questions about the new policy, as well as to educate the company about the necessary use of antibiotics to keep animals healthy.

Pork production

The pork industry, along with representatives from poultry and beef, are educating Subway as well as the public on the necessity of using antibiotics in animal agriculture to ensure the animals are healthy and safe. (photo from pork network.com)

The Kearny, Nebraska, newspaper (KearneyHub.com) recently wrote an article describing Subway’s policy change as “running into a brick wall in Nebraska.” Livestock producers rely on antibiotics to keep their animals healthy, and Subway changed its policy, stating that they would “accept meat from animals that had been treated with antibiotics to control illness, but not given antibiotics to aid in animal growth.”

National associations that represent the pork industry had a lot to say on the topic. The website meatpoultry.com restated the National Pork Producer’s Council’s position that antibiotics must be available to producers to maintain animal health. The US Food and Drug Administration regulations on antibiotics in animal agriculture are increasingly strict, and they provide safeguards against resistance.

All pork organizations agree they need to educate the public on the necessity of pork production, as you’ll hear in this audio wrap:

 

 

For help in answering questions from the public, the National Pork Producers put together a video to help you educate people who have questions about why farmers use antibiotics:

 

WOTUS rule postponed nationwide

Here’s a conversation on the 6th Circuit Court of Appeals staying the implementation of the controversial Waters of the US Rule (WOTUS):

 

WOTUS

The EPA’s implementation of the Waters of the US Rule was stayed nationwide by the 6th Circuit Court of Appeals today. (Photo from alaskapolicyforum.org)

The Sixth Circuit has just stayed the Waters of the United States (WOTUS) rule nationwide, by a 2-1 vote, until it determines whether it has jurisdiction over the petitions for review.  The majority found a substantial possibility of success on both merits grounds (that the rule does not comport with even Justice Kennedy’s Rapanos opinion) and procedural grounds (that significant changes in the rule were never put to notice and comment).

The order is, “The Clean Water Rule is hereby STAYED, nationwide, pending further order of the court.”

A stay has the same practical effect as an injunction – it prevents the EPA/Corps from implementing the rule.

Expect the stay to last until the 6th Circuit makes a decision regarding the jurisdictional issue, which is expected sometime in November.

Here’s the link to the story on KLGR radio’s website:

http://www.myklgr.com/2015/10/09/6th-circuit-court-stays-wotus-rule-nationwide/

Here’s a video from the Kansas Farm Bureau featuring Paul Schlegel, the Director of Environment and Energy Policy at the American Farm Bureau Federation in Washington, D.C.