Iowa Soybean Review, November 2015 by Iowa Soybean Association

Iowa Soybean Association, 1255 SW Prairie Trail Parkway, Ankeny, Iowa 50023

NON-PROFIT ORG. U.S. POSTAGE PAID DES MOINES, IA PERMIT NO. 1333

STRATEGIES FOR PROFITABILITY

GROWER GAME PLAN: November 2015

SOYBEANreview

IOWA

Iowa Soybean Association

November 2015 | Vol. 28, No. 2

22 Attention

Young Farmers: It Will Get Better When corn hit seven dollars in 2013, farmers joked that General Motors couldn't get trucks to the Midwest fast enough.

24 Riding the Waves Despite living in the land-locked Midwest, most Iowa farmers are pretty good surfers.

28 Fluctuating

Farmland Chad Hart and Steve Bruere feel like Drs. Doom and Gloom.

34 Psychological

Warfare: Mental Toughness By all accounts agriculture is facing an economic downturn and times are getting tight.

About the Cover: Mitch Larson, farmer from Jefferson, got his start in agriculture working with his father, Lindsey. When a neighboring farmer — and long-time Iowa Soybean Association member — Jim Andrew was looking to retire, he contacted the Mitch.Through help from the Beginning Farmer Tax Credit Program through Iowa Finance Authority, Mitch and his father worked out a share-cropping program for Andrew’s 1,300 acres. Read the rest of the story on page 22.

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Iowa Soybean Association

EXECUTIVE review Kirk Leeds Chief Executive Officer Iowa Soybean Association kleeds@iasoybeans.com Twitter@kirkleeds

Keeping the Faith As I write this month’s column, the Chicago Cubs have just been eliminated from the playoffs after having been swept in four games by the New York Mets. Although we still celebrate our earlier victory over the St. Louis Cardinals in the division series, it’s disappointing to see this baseball season come to an end for my beloved Cubs. After so many years of having little reason to watch baseball in September, let alone October, this year’s group of young upstarts gives us hope that next year will truly be “the year” for the Cubs. We must keep the faith that better days are indeed just around the corner. I thought about this need to keep the faith as I saw my son get interviewed by a local Des Moines TV station reporter outside of Wrigley Field in Chicago just after the Cubs eliminated the Cardinals. We had just watched the Cubs clinch a playoff series for the first time ever in front of the home crowd. My 25-year-old son was really excited as he shared with the reporter that although he had been waiting “his whole life” for a team such as this, he was even happier for his Dad as I had been “waiting a really long time.” He was right, it has been a very long time, but true Cub fans have always been a patient bunch and have kept the faith. As we wrap up another soybean harvest in Iowa, most

farmers have reported good to very good soybean yields. Some have even suggested that their yields in 2015 were their best ever. Given the very wet summer, and less than what you would call ideal growing conditions for many parts of the state, getting such a large crop is pretty amazing. But even as farmers celebrate a large harvest, low soybean prices continue to be a major concern. Higher input costs combined with lower prices are putting many farmers in a very difficult financial position. In this issue of the Iowa Soybean Review we have included a number of articles that remind us of the cyclical nature of agriculture and the similarities and differences between this downturn and earlier ones, particularly the 1980 Farm Crisis. Of particular interest may be an article on page 29 that summarizes a discussion that the farmer directors of the Iowa Soybean Association had during their September board meeting with “Drs. Doom and Gloom.” Just like the Cubs, better days are indeed around the corner. We have already seen an increase in soybean consumption due to the lower prices and some input costs are beginning to ease. Keep the faith and remember the 2016 baseball season begins on April 3. YOUTUBE LOGO SPECS

American Soybean Association Directors Ray Gaesser, Corning Wayne Fredericks, Osage Dennis Bogaards, Pella Mark Jackson, Rose Hill John Heisdorffer, Keota United Soybean Board Directors Laura Foell, Schaller Delbert Christensen, Audubon Larry Marek, Riverside Tom Oswald, Cleghorn

For advertising information in the Iowa Soybean Review, please contact Larson Enterprises, (515)440-2810 or larson6@mchsi.com. Comments and statewide news articles should be sent to the above address. Advertising space reservations must be made by the first day of the month preceding publication. In consideration of the acceptance of the advertisement, the agency and the advertiser must, in respect of the contents of the advertisement, indemnify and save the publisher harmless against any expense arising from claims or actions against the publisher because of the publication of the content of the advertisement.

PAGE 18

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Iowa Soybean Association 1255 SW Prairie Trail Parkway, Ankeny, Iowa 50023 watermark Phone: (515) 251-8640 Web address: www.soybeanreview.com E-mail: aclinton@iasoybeans.com

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ISA Policy Director Carol Balvanz

The Cyclical Nature of Government By Carol Balvanz, Policy Director

It will come as no surprise to you that like farming, the government operates in a cyclical fashion. Rather than weather, supply, demand or markets, the government cycle revolves around elections. We are already into 2016 election season, and therefore, the government cycle may slow or even stop over the next 12 months. Moving legislation at the federal level is heavily dependent on whether one party or the other has sufficient majority to withstand a filibuster or presidential veto. Since 2016 will see a change in the White House, legislation may sit waiting in the wings until the direction is clear for the next four years. In the meantime, we look for possible bi-partisan bills or “common sense” legislation to work on. The Iowa Legislature is not so dependent on the party in power, but elections matter just the same. You may remember that the legislature passed an increase in the fuel tax last session, culminating about 5 years of work by many entities (including ISA) who recognized that Iowa’s roads and bridges need more funding. This vote took place in a non-election year, with many legislators hoping that the vote won’t be used against them the next time they’re on the ballot. As we look at priorities for the 2016 legislative session, we know that finding significant funding for

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water quality projects needs to be near the top of our list. The 3/8 cent sales tax increase would provide a significant source of funding that would be paid by all Iowans. ISA supports that sales tax increase. And yet, will the election cycle allow a tax increase two years in a row? With that in mind, we have met with legislators across the state this fall, discussing options for improving water quality that might be possible even in a year when a sales tax increase might not. A tax credit for edge-of-field nitrogen-reducing practices could help farmers and landowners target work toward the Iowa Nutrient Reduction Strategy goals, supporting practices that significantly reduce nitrogen within tile drainage. We’d also like to work with Iowa community colleges to strengthen our network of water monitoring as well as engage students enrolled in agriculture programs with successful water quality technologies in the landscape. The legislative cycle may not allow for major moves this year. But we need to continue to make progress toward the nutrient strategy goals. And we need to remember that major moves generally don’t happen in just one or two years. The nutrient strategy will demand long term attention. That includes keeping a sales tax increase option before legislators so that when the cycle is favorable, we’ll have the votes.

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White House Recognizes Iowa Soybean Farmers for Environmental Leadership

SOY TALK Selecting soybean varieties for 2016 When selecting seed for 2016, you can do much of the work by paying attention during harvest.

To help you manage your soybean acres, Josh Enderson, Mycogen Seeds commercial agronomist for central Iowa, recommends focusing on these five important factors: 1. Consider performance across maturity groups. Compare local and statewide yield performance of varieties from different companies, sourcing university Extension data where available. 2. Understand soil types. Analyze your soil textures during harvest this year, and work with your Mycogen Relative agronomist to determine Variety Maturity what adjustments you 5N207R2 2.0 might need to make. 3. Diversify your maturities. This will help minimize weather-related risks and maximize your harvest window.

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4. Select appropriate row width. To reduce weed pressures, favor a more upright plant in narrow rows and a bushier plant in wider rows. 5. Address disease and insect pressures. As witnessed this year, untreatable plant disease pressures can hurt yield. Focus on varieties with high ratings for disease tolerance against pressures such as sudden death syndrome, white mold and frogeye leaf spot. “At Mycogen Seeds, our access to soybean germplasm allows us to develop top-performing and diverse soybean products that growers need for successful yield,” Enderson says. Enderson urges farmers to work with their local Mycogen Seeds commercial agronomist to build a customized cropping plan that puts the right varieties on their acres next year. For more information, visit Mycogen.com/Agronomy.

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The environmental and sustainability contributions of two Iowa Soybean Association (ISA) farmers were recognized by the White House. Tim Smith of Eagle Grove was named a Champion of Change and Mark Jackson of Rose Hill was recognized as a finalist for the award during a ceremony in Washington, D.C. recently. “Tim and Mark are shining examples of the progress that can be made when practices are implemented and monitored and they are willing to assert leadership,” says Roger Wolf, ISA Environmental Programs Services (EPS) director. “We are honored to partner with these farmers and inspired by the work they do to educate the public and advance environmental and water quality across the state.” The Champions of Change award recognizes everyday Americans who are making positive changes in their communities including protecting the environment through sustainable and climate-smart agriculture practices. Smith, who was also nominated for the distinction by the Soil Health Partnership, is an ISA district advisory council member and engages in environmental programs with the association. After his experience with water monitoring through EPS, Smith implemented conservation practices TIM SMITH Eagle Grove that showed measured progress on his farm. “Although I am honored to be a part of this group of ‘Champions Change,’ I am simply an Iowa farmer doing his best to raise crops as sustainably and as environmentally-friendly as possible,” says Smith who is a fourthgeneration farmer in Wright County. MARK JACKSON “Conservation isn’t a buzzword for Rose Hill me. It’s how I farm after understanding how I truly play a part in the whole system.” Jackson has also been instrumental in the discussion about sustainability and conservation in Iowa, across the nation and globally. While serving as ISA board president, Jackson pioneered a first-of-its-kind soybean sustainability documentation project and has continued to be a champion of the sustainable practices. Jackson presented a TED to talk in 2014 about the sustainable legacy of his family farm. “Agriculture is evolving constantly and implementing environmental and sustainable practices is part of that,” Jackson says. “I believe it is important that modern agriculture shares its story of sustainable production. That’s why I’m dedicated to continuing a legacy of sustainability on my farm and educating other farmers, industry partners and consumers about the environmentally and socially responsible efforts of Iowa farmers.”

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FIVE QUESTIONS WITH JOHN ROSENBOOM By Carrie Laughlin

to put numbers together for 2016, and again, rented acres are not penciling out well at all.

How can farmers rebound if prices continue to drop? John Rosenboom is the assistant vice president at Heartland Bank in Manson, Iowa. He is also an ag loan officer and works with crop insurance sales. Rosenboom came to Heartland Bank in 2010 with a lifelong experience in the farming industry. A fifth-generation soybean and corn farmer, Rosenboom answers the questions farmers like himself face when grain prices are uncertain.

After years of higher grain prices, are farmers facing a tougher economic outlook?

As with any business, lower prices lead to tighter margins and stresses profitability, which places greater importance on making sound management decisions. The droughts of 2012 and 2013 already had a negative impact on area farmers, especially operations with more rented than owned acres. This crop year is not looking very good for producers who have not presold and implemented a good marketing plan. Lenders are beginning

The first thing would be to have open conversations with land owners on 2016 cash rent; they need to come back down to reasonable levels. We are seeing more flex leases being considered to protect both the tenant and landowner. Obviously they’ll need to sit down with a sharp pencil and work on the 2016 cash flow. Cut all unnecessary expenses and work on lowering other aspects of their operation. Living expenses, although a sore subject, will need to be addressed immediately. Farmers will need to look into a mix of cutting expenses, diversifying the operation and/or searching for off-farm income.

What advice would you give to young farmers today as grain prices rise and fall?

Farming is cyclical by nature. High prices cure high prices and low prices, hopefully, cure low prices. The good operators know their cash flows, work closely with their lenders and build marketing plans before the seed is out of the bag. They also manage debt wisely and build working capital during the good years to weather the bad.

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Again, diversifying the operation with livestock or other business lines and increasing off-farm income to cover living expenses is huge. The farm will usually take care of itself.

Will lower land prices make it more possible for newer, younger farmers to purchase land?

Younger farmers that have built working capital and done a good job managing debt may have opportunities to purchase land down the road. There are some good FSA programs that work in conjunction with your local bank to help land purchases cash flow. The best advice is to begin planning for tomorrow today.

What is one mistake you see farmers routinely make when markets are volatile?

Emotions tend to get involved when marketing the crop they have worked all year to produce. Many farmers entered farming because it is in their blood and they are doing it as a family. When it comes to marketing, instead of seeing bushels in the bin they need to see dollars. While some producers hit home runs in the recent past by holding on until it felt right, good operators with a grasp on cash flow along with a solid marketing plan come out as winners over the long haul.

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Nominations Sought for Iowa Soybean Association Leadership Awards Awards presented in five categories

The Iowa Soybean Association (ISA) is seeking nominations to recognize members and friends of the association who have demonstrated commitment and leadership in agriculture, dedication to improving soybean production and excellence in environmental performance. Awards will be presented in five categories: Legacy of Leadership, Rising Star, Environmental Leader, New Leader and Friend of the Iowa Soybean Association. ISA President Wayne Fredericks of Osage says the program provides a unique opportunity to recognize those who dedicate their time, talents and expertise to furthering the mission and goals of the association. “We’re dedicated to expanding opportunities and delivering results for Iowa’s soybean farmers,” said Fredericks. “The success of the association and soybean industry is driven by committed individuals, including the great work of our farmer leaders in all stages of their careers, as well as partners who have supported Iowa soybean farmers.”

Awards and criteria: • Legacy of Leadership — given to an Iowa soybean farmer who has demonstrated a passionate and relentless commitment to growing the soybean industry in Iowa.

• Rising Star — recognizes the son or daughter of an ISA member who’s actively involved in promoting agriculture through involvement in local, state and national activities and organizations and who is preparing to continue ag studies in college. Eligible nominees are 14-18 years of age (high school students or students who have just graduated from high school). New this year, award includes a $1,000 stipend to be used towards education expenses, courtesy of Farm Credit Services of America.

• Environmental Leader — presented to an ISA member who has demonstrated a commitment to practices that improve environmental performance. The soybean farmer who receives this honor will be nominated for the American Soybean Association Conservation Legacy Award to be presented at the 2017 Commodity Classic.

• New Leader — awarded to a district soybean leader who has been involved in his/her District Advisory Council for two years or less, has shown outstanding involvement and possesses the skills and talents to do great things for the soybean industry and agriculture.

• Friend of the Iowa Soybean Farmer — given to an elected leader, reporter or other ISA partner who has supported Iowa soybean farmers through his/her actions and efforts.

All nominations must be in writing and received no later than Dec.1. Nomination information can be accessed at www.iasoybeans.com/awards/ or requested by calling (800) 383-1423. Submit nominations by mail to Iowa Soybean Association, Attn: Ann Clinton, 1255 SW Prairie Trail Pkwy, Ankeny, Iowa 50023, or aclinton@iasoybeans.com. Award recipients will be selected by ISA directors. Awards will be presented at the association’s award luncheon at the Embassy Suites in Des Moines Jan. 26. To learn more about ISA, go to www.iasoybeans.com. 1 4 | N O V E M B E R 2 0 1 5 | S O Y B E A N R E V I E W. C O M

Iowa Farmer Appointed to United Soybean Board After being appointed by U.S. Agriculture Secretary Tom Vilsack, 17 farmer-leaders from across the country will be sworn in as directors of the United Soybean Board (USB) at its upcoming annual meeting. The 17 soybean farmers will include five new appointees and 12 returning directors. Additionally, the U.S. Department of Agriculture also recently announced that USB will increase its number of farmer-leaders from 70 to 73 to reflect growing U.S. soybean production. These new directors will be from Missouri, New Jersey and Wisconsin. The change will be effective for the 2016 boardappointment process. This year’s new volunteer farmerleaders invest soy checkoff funds on behalf of all U.S. soybean farmers in projects to improve farmer profit potential. With unpredictable prices, growing production worldwide and

more competition, U.S. soybean farmers will need more innovation, such as improved seed varieties and technology, new ways of generating demand and new methods for increasing the value they receive from soybean meal and oil. “We are thrilled to have these farmerleaders be part of a new chapter with the APRIL HEMMES United Soybean Board,” says Bob Haselwood, USB chairman and soybean farmer from Berryton, Kansas. “The checkoff is dedicated to using advancements in technology to help U.S. soy remain a top choice for our customers, and these farmerleaders will be instrumental in helping us accomplish that.”

Appointed farmer-leaders include: JIM CARROLL III, Arkansas* WALTER L. GODWIN, Georgia* GARY BERG, Illinois (2-year term) LYNN ROHRSCHEIB, Illinois MARK ALAN SEIB, Indiana* APRIL HEMMES, Iowa DENNIS CLARK, Kentucky* RAYMOND S. SCHEXNAYDER, JR., Louisiana* ROCHELLE KRUSEMARK, Minnesota TODD A. GIBSON, Missouri* MARK CASPERS, Nebraska* MORRIS LEE SHAMBLEY, North Carolina* JAY MYERS, North Dakota* JOHN MOTTER, Ohio* ANDREW J. FABIN, Pennsylvania DAVID GREGORY IVERSON, South Dakota* ROBERT W. WHITE, JR., Virginia*

*Indicates returning director

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AGP’s Export Terminal Port of Grays Harbor Aberdeen, WA

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{

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}

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Kent Mowrer CSIF Senior Field Coordinator

Working beside you...

to develop a plan for growing your farm It takes the right information to successfully grow your livestock farm. But, just as important is having a resource to help you think through your project and future plans. Lucas Tjelmeland, a fifth generation farmer, learned the Coalition is a trusted, confidential resource when he was planning a new hog barn on his family’s farm near Nevada. “Growing your farm today is complex — from regulations to siting to neighbor relations, and we wanted to make sure we understood all of our options before turning dirt. The process was smooth and the staff was very knowledgeable,” says Lucas. “Thanks to the Coalition, we got our questions answered and developed a proactive plan to help grow our farm with livestock.” To learn more, or to get started on a plan for your farm, call 800-932-2436 or visit www.supportfarmers.com.

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Investing Checkoff Dollars

CYCLICAL NATURE OF FARMING A FEW GOOD YEARS. A FEW BAD YEARS. That's how it goes in agriculture. Here's what to keep in mind to manage the swing in profitability.

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Investing Checkoff Dollars

ATTENTION YOUNG FARMERS: I T WI L L GET BET T ER By Easton Kuboushek

W MITCH AND LINDSEY L A R S O N , Jefferson

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hen corn hit seven dollars in 2013, farmers joked that General Motors couldn't get trucks to the Midwest fast enough. While other farmers were taking the record profits straight to the dealership, Mitch Larson continued driving the same 1997 Chevy he bought in high school. As a young farmer, it was one of his many ways to prepare for the unpredictable, seemingly inevitable challenges that come with the cyclical nature of agriculture. Mitch, like many young men and women, got his start in farming working with his father Lindsey, a 35-yearveteran farmer from Jefferson. "I had always liked farming but I wasn’t quite sure that’s what I wanted to do," shares Mitch. In the winter of 2012, he received a phone call that solidified his decision to farm on his own. Neighboring farmer — and long-time Iowa Soybean Association member — Jim Andrew was looking to retire and had worked with the Larsons for many years, employing Lindsey for

Investing Checkoff Dollars

custom harvesting and Mitch for carpentry and painting. Fortunately for Mitch, Andrew took a chance on him, working him into the operation before his retirement. Through help from the Beginning Farmer Tax Credit Program administered through Iowa Finance Authority, Mitch and his father worked out a share-cropping program for Andrew’s 1,300 acres. “Selling the crop was a neat deal to do,” recalls Mitch. “It definitely peaks your interest and attention to the markets.” Strong commodity prices made Mitch’s first trips to the elevator an encouraging experience; but lessons passed from his father helped him stay rooted in his excitement. Lindsey began farming in 1978 after graduating from Iowa State University when inputs were low and prices were high. “The seventies were called the go-go years,” recalls Lindsey. “You planted a crop, you sold it, you bought another on credit, credit was easy. And then in 1979, Paul Volcker in the Federal Reserve said ‘We’re going to stop inflation.’ He did that with interest rates.” At the time, Lindsey operated 600 acres and owned cattle. He remembers borrowing money for cattle at a 7.5 percent interest rate. In

less than two years, it jumped to commodity business which, to be 19.5 percent. successful, requires high volume. In Lindsey makes a point to pass the order to reach high volume they need valuable lessons he learned surviving access to acres and acres, which through the 80s to his son; like requires paying high rent, Baker says. maximizing the life of equipment and Adding livestock, custom farming, delaying upgrades — like a new truck trucking and niche farming are a — for necessary times. few simple ways Baker suggests While Mitch began his career diversifying. Farming has a lot of during the latest cycle of “go-go ups and downs, so running a side years,” he remains focused on the business is often a long-term solution long term, using the good times to to short-term price fluctuations. pay down debt and diversifying his Mitch, now with a young son income to weather low times. Mitch himself, hopes to be farming for a supplements the farm income by long time and pass the lessons his utilizing his skills in construction, dad taught him on to his son. painting and welding on rainy days “I’m in it for the long haul, or at and during the winter months. least I hope to be,” he says. Young farmers like For more information on the Beginning Mitch who are facing Farmer Center visit extension.iastate.edu/bfc the tougher agronomic outlook for the first time need to While it may be harder for young make diversifying their operation people like Mitch to get in and stay a key focus, according to farm in farming, Baker encourages them to transition specialist David Baker with stick with it. the Iowa State University Extension's “Keep the faith,” concludes Baker. Beginning Farmer Center. “Farming has always been an up “I really think young people need and down game. If you’re looking to consider being more than just a up to make the right moves at the full-time farmer,” Baker insists. right time – great. If you make some Young farmers whose interests wrong moves, well, experience is center on corn and soybeans alone what you get when you don’t get are venturing into a low margin what you want.”

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Investing Checkoff Dollars

RIDING THE WAVES By Matthew Wilde

espite living in the land-locked Midwest, most Iowa farmers are pretty good surfers. While some may not know a long board from a boogie board, soybean and corn producers know a little something about riding waves. Surviving the ups and downs of commodity markets, that is, not surging walls of water. It can be a thrilling and terrifying ride, and some producers do wipe out. But economists and financial experts say the cyclical nature of grain prices have always and will continue to be a part of agriculture. Proactive farmers who manage their operations and market grain with that in mind have the best chance to stay

and Outreach grain economist. “Farmers have to take a multi-year perspective. During the (latest) boom, which farmers enjoyed their best prices and incomes ever, they reinvested in their operations (land, machinery, buildings),” he continues. “(However) most farmers that went through the 1970s and ‘80s also recognized the record profits of the last several years would have to be banked for when they need them later.”

Wild ride

About every 30 years there’s a dramatic swing in commodity prices, Hart says. It’s typically triggered by a major worldwide event, political turmoil, weather, over production, policy Economists and financial experts say the shift or a combination cyclical nature of grain prices have always of several factors. Commodity prices and will continue to be a part of agriculture. in Iowa increased in the Roaring ‘20s. On average, cash corn sold for 91 cents and in business, officials say. Or even come soybeans a whopping $2.92 per bushel out ahead. in 1925, government records show. By “We talk about ag cycles all the time comparison, farmers received similar and this is one of them. One of those prices in the late 1960s and a little more waves, if you will," says Chad Hart, than $1 better for both crops in 2000. Iowa State University (ISU) Extension 2 4 | N O V E M B E R 2 0 1 5 | S O Y B E A N R E V I E W. C O M

Then the Great Depression hit. Prices plunged. Corn averaged 23 cents per bushel in 1932 and soybeans a meager 53 cents. “What you will find is waves of strong prices, followed by a significant drop and then they level out,” Hart says. Soybean and corn markets surged after World War II as industrial output increased during the recovery period. In 1951, cash corn averaged $1.58 per bushel and soybeans averaged $2.89, or triple pre-war prices. Values stabilized for about 20 years until the export boom in the 1970s, considered a golden era for agriculture. Soybean and corn prices again doubled or tripled during the first half of the decade to more than $6 and nearly $3 per bushel, respectively. Again, prices stabilized. The last big boom, which started in the late 2000s, was mainly fueled by ethanol and biodiesel production and mandates, Hart says. And China’s insatiable appetite for U.S. soybeans. The country decided to concentrate on corn production and became the world’s largest importer of beans, buying more than one in every four rows produced here. Cash soybeans and corn more than

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doubled in value from 2006-13. The annual average highs were $14.13 per bushel in 2013 and $6.67 in 2012, respectively. “Farmers responded by doing what they do best, they produced more to capture higher prices. Then they fall, and that’s what we’re experiencing today,” Hart says.

In for the long haul

Chad Hanson, president of Corporate Farmer, an agricultural accounting and consulting firm in Mason City, tells clients they need

$16 per bushel, respectively — in the summer of 2012. Kevin Glanz of Manchester did not. The Iowa Soybean Association and District Advisory Council member is a steadfast believer in sticking with a marketing plan (utilizing hedge-to-arrive and basis contracts, for example) and controlling costs to ensure longevity. “When you start farming during the 1980s Farm Crisis, you realize every penny counts,” Glanz says. “During the really good times, I never sold $7 or $8 corn because I had a plan selling a year ahead.

— K E V I N G L A N Z , Farmer from Manchester

“You have to look at the big picture … I knew it wouldn’t last. It’s a cycle,” he adds. “I may have lost some profit a few years ago, but I’m getting a better price now than what’s currently offered. I’m not selling any $3.50 corn, most is sold for $4.50 to $4.75 right now. I have some soybeans sold for (well over) $10, not $8.50.” Savvy marketing is only one skill needed to survive the cyclical nature of farming. Cost control and a willingness to adapt is the other, officials say. When times were good, Glanz switched to no-till, when he could

Average Iowa corn and soybean prices by marketing year. Soybeans

Corn

Corn prices

Soybean prices

to know their cost of production and eliminate unnecessary spending to survive the ups and downs of farming. Taking a proactive approach to marketing is also key, he adds. “A lot of it is having a good solid game plan from the beginning and sticking to it. You don’t always get the top price for crops, but you avoid the lows,” Hanson says. “Cash flow is king. You don’t want to be in a situation that you can’t meet your obligations.” Some farmers were able to cash in on record high corn and soybean prices — about $8 and more than

afford to sacrifice a little revenue during the learning curve and as he rebuilt soil structure. Now, Glanz says he saves at least $30 per acre in fuel costs and yields are just as good as or better than his conventional tillage days. He’ll also plant non-genetically modified seed corn to save money too. “It’s dollars in, dollars out. That’s what you have to look at,” Glanz says. “Are you saving on diesel fuel? Seed? Fertilizer? The way I look at it today, the last five years we’ve been adding up our dollars. The next five we will be counting pennies.” Hart doesn’t see another ‘80s Farm Crisis in the future, when a rash of circumstances — a U.S.-imposed Russian grain embargo, skyrocketing interest rates, plummeting land values, strangling debt and high inflation — led to farm foreclosures and bankruptcies. However, he says the latest price downturn will force some farmers who overspent or didn’t prepare to exit the business and encourage others contemplating retirement to do so. “We’re going to have a few less farmers next year and the year after that. That’s a general trend,” Hart says. “Somebody else will pick up the land. Most will continue to chug right along.” Glanz says he still hopes to expand, and his forward-thinking mindset will help. “I think my opportunity will come yet,” he adds.

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SOYBEA N S AT

PREMIUM PRICES By Matthew Wilde

hen soybean prices are down, identity preserved contracts are at a premium. The U.S. Department of Agriculture estimates average farm soybean cash prices will range from $8.40 to $9.90 per bushel for the 2015/16 marketing year. Analysts don’t expect much, if any, improvement in the next few years as supply outstrips good demand. That’s assuming no major weather events reduce global supply. The prospect of losing $100 or more per acre this year and in 2016 on soybeans (and corn) on rented ground, according to Iowa State University (ISU) Extension and Outreach experts and other ag sources, is a real possibility. Understandably, farmers are looking for ways to maximize revenue. Raising identity preserved soybeans, often food grade or nonGMO (genetically modified organisms), for a premium price is one possibility. Opportunities do exist, but they’re hard to find. “Many 2016 contracts are already

full,” says Steve Johnson, ISU Extension farm management specialist based in Polk County. “Why are farmers looking so hard now? Because they aren’t making money with cash soybean prices at $8 to $9.” Identity preserved soybean contracts have been available for about 20 years, Johnson says. Soybean crushers and grain companies pay premiums to entice farmers to grow certain types of soybeans to meet consumer demand. Premiums vary widely from 10 cents to about $2 or more per bushel above local cash or Chicago Board of Trade (CBOT) prices. In return, most farmers must provide segregated on-farm storage and deliver bushels when requested, referred to as buyers-call contracts. Farmers are required to follow specific procedures to prevent co-mingling of grain. All equipment (combines, wagons, trucks, augers, etc.) and bins need to be thoroughly cleaned. Despite extra management and paperwork involved, there’s no shortage

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of farmers looking to boost their income raising identity preserved beans. “Contracts are hard to come by because there’s limited demand for non-GMO beans (compared to conventional soybeans) and farmers are always looking for more revenue,” Johnson says. Large soybean processors like Ag Processing Inc. (AGP), Cargill and Archer-Daniels-Midland (ADM) have identity preserved programs. Numerous small grain companies offer contracts as well for whole beans, mostly shipped overseas via containers or in bulk. AGP is looking for Iowa growers to raise Monsanto’s Vistive® Gold high oleic soybeans. The 2016 pilot program will pay a premium of 80 cents per bushel for on-farm storage and 70 cents per bushel for harvest delivery. AGP’s Manning plant will process the beans and sell high oleic oil to interested food manufacturers. Contracts for an estimated 7,000 to 10,000 acres are available on a firstcome-first-serve basis with hopes to

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expand in 2017, says Mark Sandeen, AGP vice president of processing and marketing. Interested farmers can contact AGP’s Sergeant Bluff location or member cooperatives: Farmers Cooperative in Arcadia and Aspinwall Cooperative. “There’s plenty of interest with soybean prices falling and high input costs. It’s a challenge to make money,” Sandeen says. “The premium could be the difference between making a little money or not.” Cargill Cedar Rapids West and Solae, a soy-based ingredients company owned by DuPont, operate an identity preserved, non-GMO soybean program. Cargill declined to release the premium amount or contracted acres for proprietary reasons. Participating Iowa farmers deliver contracted beans to the Cedar Rapids crush facility. Solae markets soy protein used in infant formula, soy crisps, baked goods and other products. All of Jim Foels’ 100 acres of soybeans are enrolled in Cargill’s nonGMO program. The Brooklyn farmer and Iowa Soybean Association (ISA) member says he’s fortunate to be part of it for the last decade because identity preserved contracts aren’t readily available and the premium softens the blow of low soybean prices. Foels says

“

the Cargill program is at capacity. Unfortunately, the grain company “There is extra work cleaning the referred to by the seed dealer said combine and augers. (But) what we premiums were only available for pregot sold ahead, we’re going to be sold beans. profitable,” Foels says. “I had no signed contract. There’s The semi-retired farmer also nothing anyone is reneging on,” he says. contracts 200 acres of non-GMO waxy “But the beans look good so there’s still corn through Penford Products Co. an opportunity to do alright.” in Cedar Rapids that pays 65 cents ADM/Uniliver Soybean per bushel more than yellow dent delivered to The best financial move farmers can the facility. make is sharpening their management To take full advantage of identity preserved and marketing skills. premiums, Johnson says farmers need to be savvy marketers since most contracts are Sustainability Program offers farmers based on the futures market. a small financial incentive to raise “Jim knows how the futures sustainably produced soybeans, markets work. He thinks further out which are crushed at ADM’s Des than six months … a lot of farmers Moines plant. ADM sells the oil to the choose not to do that,” Johnson says. international food maker, which uses it The farm management specialist to make Hellmann’s Mayonnaise. also encourages farmers to have There’s no question premiums will identity preserved contracts locked in help the bottom line, Johnson says. But before they ever plant the crop. the best financial move farmers can ISA member Jeff Stillman of make is sharpening their management Emmetsburg planted 230 acres of and marketing skills. non-GMO soybeans for the first time, “When you have $8 to $10 cash which was required by the landlord beans, everyone is chasing that as a condition for renting the ground. missing $2,” he says. “The answer The small company he purchased seed for 2016 is managing costs without from promoted its product by saying sacrificing yield … and do a better job premiums were available. of marketing.”

There is extra work cleaning the combine and augers. (But) what we got sold ahead, we’re going to be profitable .

”

— J I M F O E L S , Farmer from Brooklyn

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F LU C TU A TI N G

FARMLAND By Easton Kuboushek and Matthew Wilde

had Hart and Steve Bruere feel like Drs. Doom and Gloom. When the Iowa State University (ISU) Extension and Outreach economist and land management company owner talk to farmers lately about softening land values, which coincide with falling commodity prices and incomes, they haven’t exactly been the conveyers of good news. “Farmers have started to call me Dr. Doom,” Hart said to Iowa Soybean Association (ISA) leaders during the organization’s September board meeting. He and Bruere provided historical and current information on land and commodity values and income potential, or lack of it. The agriculture experts were the featured speakers during ISA’s periodic “mega issues” series, which provides directors and staff with insight concerning significant issues facing agriculture. “If you’re Dr. Doom, I don’t know who I would be going through these slides,” Bruere, president of Peoples

Company, quipped. In a follow-up interview, the experts say although land may be worth less than — in some cases, significantly less — what farmers paid during recent high commodity prices it’s not unusual for values to ebb and flow. The majority of producers will navigate the downturn just fine and a repeat of the 1980s Farm Crisis isn’t on the horizon. “The cycles are the cycles,” says Bruere. “It comes down to how bad the cycles get and the consensus is we’re not going to have another 1980s — it’s different this time.” High input costs from fertilizer, seed, machinery and rent present a different set of challenges from the ‘80s, primarily concerning cash flow. Farmers 30 years ago faced high land prices and borrowing rates leading highly leveraged operations to bankruptcy and foreclosure. “The primary difference between the 1980s and today is the level of farmer debt,” Hart adds. “When we entered the 1980s, farmers had accumulated significant debt that helped fuel the land

price run-up. The high land prices today were led by record farm incomes over the past few years and a significantly smaller debt load.” Land values have soared the last 15 years, primarily driven by commodity prices. According to the United States Department of Agriculture National Agricultural Statistics Service, in 2000 average cash corn sold for $1.78 per bushel and the average acre of Iowa farmland sold for $1,857. At its peak in 2012-2013, cash corn averaged $6.67; farmland averaged $8,716 an acre. A 40-acre tract near Sioux City fetched a record $21,900 an acre. “Farmers not only used those record incomes to purchase land, but also paid down debt and, in general, put their farms in a much better financial situation before the price downturn,” says Hart. Now two years into a downward cycle, corn and soybean prices have depressed between 40-50 percent. Farmland values, while continuing to wane, have only declined 15 percent resulting in a price point challenge

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for farmers and landowners alike, primarily concerning cash rent.

The cash rent paradigm

What’s my land worth? How much should I pay for rent this year? Bruere’s phone rings a dozen times a day with the same questions. While the answer is unique to each farmer and landowner, the consensus is prices need to level out. In a cash rent scenario prepared by Peoples Company, 17 farms with a 70 corn suitability rating (CSR) in Warren County, averaged $247 per acre rent in 2015. If prices remained the same in 2016, assuming the same average yield, marketing prices and expenses, farmers will lose $44 per acre on corn and $82 on beans. “What we’re seeing is that rent is coming down a little bit but not enough to justify where commodity prices are at today,” says Bruere. “There is too much machinery and too much competition for rented acres.” Grain prices would have to increase 25 percent to maintain a marginal profit if rents remain high. In a similar scenario, Bruere estimated rent will need to be around

$184 based on average market prices, Iowa’s 30.7 million cropland acres expenses and yield. are worth almost $244 billion based “There are so many factors that play on 2014 research from ISU. More than into this thing with interest rates and half of that sum (56 percent) is owned commodity prices — at the end of the by people 65 and older suggesting a day you’ve got to do what’s right for you because Since 1970, farmland has shown an annual it’s really hard return of 11 percent — 7 percent from to project where appreciation and 4 percent from cash return. this thing is at,” says Bruere.

The future of Iowa farmland

There’s no crystal ball on Bruere’s desk but he believes in the future of Iowa farmland. Since 1970, farmland has shown an annual return of 11 percent — 7 percent from appreciation and 4 percent from cash return. “Will it be worth more a year from now? I don’t know. Probably less, says Bruere. “The one thing I know is land will be worth more 10 years from now than it is today — and it’ll be worth more in 20 years than it is today.” In addition to consistent return, the total cap rate of Iowa farmland makes it some of the most valuable in the world.

wealth transfer of more than $136.5 billion in the next 10-20 years. Who’s going to buy that land? Farmers have been the predominant purchasers of Iowa farmland — about 80 percent in the last four years — and will continue to be in the future, says Bruere. “When land owners call and ask how much their land is worth, I ask ‘Who’s your neighbor?’” says Bruere. But he believes investors will continue to play a larger and larger role. “I’m not necessarily advocating for what’s happening, but it’s just the reality of the world,” says Bruere. “We think there will be more investors in the market place.”

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FARMED POTHOLES: MONEY MA K ER OR PROFIT TAKER? By Michelle Jones and Joe Murphy

educing risk and being profitable are central business considerations for farmers. Now consider, despite high commodity prices in recent years, some farmers continually underperform or lose money on specific acres: prairie potholes. The Des Moines Lobe is part of the prairie pothole region, an area characterized by depressional wetlands and nutrient-rich soil. During the last century, many potholes were drained by tiling to make them suitable for farming. However, even with tiling, many of these areas continually hold water — drowning or injuring crops and reducing yield, and ultimately profit. With this in mind, the Iowa Soybean Association (ISA) Environmental Programs and Services (EPS) team sought to understand the profitability of farming prairie potholes and determine the possibility of profitable alternatives.

"At a time of reduced farm profitability and heightened attention on water quality, finding ways to increase profit and improve water quality is of utmost importance,” says Adam Kiel, ISA EPS operations manager — water resources. “Taking a closer look at potholes may be a win-win for profits and water quality." The study consisted of aggregated yield data from ISA On-Farm Network® participants from 2006-2014 and contained 8,500 acres with potholes and yield data. In each field, yield points were categorized as “upland” or “pothole” and headlands and yield outliers were removed from the analysis. Through profitability mapping, the team calculated expenses, revenue, profit and return on investment (ROI) for each field’s upland and pothole areas. Study results showed the 2006-2014

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multi-year average profit per acre per year was $152.50 for upland areas and $83.27 for potholes. The multiyear average ROI was 26 percent for upland acres and 15 percent for prairie potholes. The most profitable years for both potholes and uplands were 2010-2012. Removing the years of high returns and looking at 2006-2009 and 2013-2014 reveals pothole areas show a loss of $32.36 per acre per year. Taking the study one step further, Kiel analyzed the relationship between precipitation and profit/loss. He found that years with above average precipitation from April through June led to greater loss in the pothole areas. In fact, the three instances potholes were more profitable than upland acres — 2006, 2009 and 2012 — occurred following periods of below normal April through June precipitation. Understanding this simple

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“

When you look at it on an economical stand point

you farm it (potholes) and get a crop out of it once

every four years. Why butt your head against it?

”

— TOD D L E W I S , Farmer from Forest City

relationship can help producers make more informed management decisions. According to Chris Anderson Ph.D., Iowa State University climate risk analyst, the current weather pattern is trending toward more frequent wet springs. “It’s not just that it’s been a little bit rainier, it’s that we’ve had more extreme springs than we have ever had in the past,” Anderson explains. Couple this with lower commodity prices, and producers may want to consider alternatives to traditional crops for pothole areas to reduce their risk and maximize profit on those acres. One option may be to enroll these potholes into the Conservation Reserve Program (CRP). The CRP Farmable Wetland Program (FWP) is designed specifically for wetland basins that suffer from ponding. “This is one of the most highly incentivized CRP practices available due to all of the benefits it provides,” says Josh Divan, Pheasants Forever farm bill biologist. Divan said annual CRP payments are based on the three most predominant soil types in the offer area which results in every CRP contract

having a unique rental payment. Recognizing precipitation trends “Eligible participants receive a as well as environmental impact, $100 per acre Signup Incentive producers are urged to examine Payment, up to 90 percent cost-share to the profit/loss potential of farming establish the practice plus a CRP rental prairie potholes. rate that is 20 percent higher than most “When you look at it on an regular CRP practices,” Divan says. economical stand point you farm it “For example, an eligible applicant in (potholes) and get a crop out of it Winnebago County could have a CRP once every four years," says Todd FWP contract pay as high as $350 per Lewis, farmer from Forest City. acre.” "Why butt your head against it? We In addition to improved profit, have to be proactive about this. We restored potholes could provide great have to start showing people that, water quality benefits. as farmers, we're doing as much “There is tremendous potential as we can to make this better. And for nutrient reduction throughout the luckily, we have a government that Corn-Belt region of the United States is backing the farmers and allowing if we simply let naturally occurring Producers may want to consider alternatives wet spots on the landscape be wet,” to traditional crops for pothole areas. says Keith Schilling, research engineer for the Iowa Geological Survey. us to do this (conservation “Poor crop development in wet areas methods) and getting paid for it.” leaves nutrients prone to leaching Farmers interested in more into tile and being transported to the profitable alternatives are stream network. On the other hand, encouraged to contact their local wet spots managed with perennial USDA Service Center. For more vegetation are natural bioreactors — information about the prairie soaking up nutrients and reducing pothole analysis, email Kiel at downstream loads.” akiel@iasoybeans.com. N O V E M B E R 2 0 1 5 | S OY B E A N R E V I E W. C O M | 3 1

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DEN N IS B O G AA R DS , farmer from Pella and ISA director.

AMERICA’S TEAM By Allison Arp

here has long been a great debate over who America’s team truly is. Is it the traditional Dallas Cowboys? The aptly named New England Patriots? The under-dog New Orleans Saints? In actuality, it’s none of the above. America’s true team doesn’t only step on the field on Sundays, but consists of the thousands of farmers that step on their fields every day of the year. Farmers aren’t that different from National Football League (NFL) players. Both scout their opponents, either by watching game tape or analyzing aerial imagery. Both make changes in response to what their

successes the next year. I look at how things went from year-to-year and learn from those experiences.” Farming, like football, while everchanging tends to follow a cyclical trend. Technology evolves, equipment improves and people change. As any sports fan or farmer can attest, there will be good years, there will be bad years and there will be some years in-between. The best farmers and players learn from the bad and mediocre years to make them rare, while striving to improve their odds of having a good year. To help illustrate this point, look at one of the most storied rivalries in all of football, the Green Bay Packers and the Chicago Now more than ever there is data to let Bears. These teams are farmers know what is and isn’t working guaranteed to play each other twice during the on their farms. regular season, and in a good year may meet opponent does, switching to a 3-4 again in the playoffs. This year’s first defense or applying a fungicide. But match up between the teams was what really parallels the two is their heightened because it was also the ability to learn from experience. season opener. Both teams had weeks “We learn a lot by trial and error to come up with their game plans to and we really learn when we fail,” face their formidable opposition. says Pella farmer and American Regardless of the outcome (Green Soybean Association director Dennis Bay won), neither team will take Bogaards. “We learn a little bit when that same game plan into their next we have success because sometimes contest on Thanksgiving Day. The successes one year don’t turn into players and coaches will analyze 3 2 | N O V E M B E R 2 0 1 5 | S O Y B E A N R E V I E W. C O M

the successes, failures and areas to improve their performance. They will then make changes to increase their odds of winning the next game. Farmers can take this same approach when it comes to evaluating and improving their operations. “Continuous improvement is very vital,” says Bogaards. “If we‘re not improving, the neighbor is. If we’re doing the same old-same old that puts us at a disadvantage. People who don’t do the same thing every year, and are more progressive, are the people learning a lot.” Now more than ever there is data to let farmers know what is and isn’t working on their farms. After each harvest, farmers need to sit down and analyze their victories and missteps. Were the products and practices used effective? Does the yield map show areas that consistently under-produce? What diseases were seen late in the season that could be better managed next year? Answering all these questions allows farmers to go into the next growing season ready to face whatever the opposition, and Mother Nature, throw at them. Rather than repeating the same practices year-to-year, America’s team of farmers should take a tip from their NFL counterparts and adjust their game plan every season.

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WI TH P RIVILEGE COMES

RESPONSIBILITY By Michelle Jones

ometimes people don't appreciate the beauty before them nor realize the impact they have on the land. Iowa farmers are fortunate to farm rich, productive land, and in turn must protect it. Today, Iowa faces water quality, erosion and soil health challenges. For decades, conservation practices have been touted as the solution and that remains true as outlined in the Iowa Nutrient Reduction Strategy. “Ultimately, it’s the right thing to do,” says Seth Watkins, farmer from New Market. “What is the alternative if we don’t? The Dust Bowl proves that the way we farm can impact humanity.” A cow-calf producer, Watkins’s conservation focus intensified following a big blizzard. He remembers the water running down the stream not looking good, and decided he wanted abundant green grass and clean water. In response, he limited livestock access to streams and now has grass headlands and waterways, plants cover crops, uses no-till and contour farms. “When I look at a conservation practice, my question is will this not only keep soil on my farm, but also build the health of that soil,” the

Pinhook Farms owner says. “Will this clean the water that passes through my farm? Will this enhance the wildlife on my farm?” Some say conservation is more difficult when profit margins are tight, but certain practices offer strong financial opportunities. With the current economic situation, Watkins doesn’t understand why more farmers aren’t considering Conservation Reserve Program (CRP) enrollment for headlands, waterways and wetland areas as well as costshare programs for cover crops. Watkins explains that farmers don’t have to put a whole field in CRP. When the yield monitor shows a piece of ground that isn’t making money, he recommends visiting with the local Natural Resources Conservation Service about program options to do something good for the land. “We just put a field into CRP at $315 an acre in southern Iowa,” Watkins shares. “That’s far better than we can dream of raising corn and soybeans on that farm, for the next few years anyway, and it will be good for the soil.” Watkins is a big proponent of cover crops. Initially, he planted them for winter forage, but quickly noticed other

improvements, such as higher organic matter. Now, he has areas where he can reduce chemical use, saving money. “The first reason we use cover crops is that they keep the soil in place — ultimately that’s our future,” Watkins explains. “I can tell people, if they hang in there and manage it carefully, over time you build up organic matter, you have healthier soil and there is an economic benefit.” Roger Wolf, Iowa Soybean Association Environmental Programs and Services director, says it’s important to look at the long-term benefits of conservation practices. “Farming is an investment,” Wolf says. “Some farmers are benefiting now from conservation decisions they made a decade ago. We need to look at the long-term viability of the land.” With most conservation practices requiring long-term investment, Watkins is quick to recognize the struggles of farmers who lease land. He believes landlords should be involved in this conversation because conservation is important to protect their investment portfolio. “Behavioral change is going to occur from leadership in the industry,” Watkins says. “We want a voluntary program and we want self-government, so we have to have self-discipline. We have to be responsible.”

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P SYCH OL O GICAL WARFARE:

MENTAL TOUGHNESS By Dorothy Tate

y all accounts agriculture is facing an economic downturn and times are getting tight. Market prices are unpredictable and incomes unsure. This situation isn’t anything new for farmers, but how do they deal with the psychological effects of uncertainty? They have to be mentally tough. Studies around the world show that farmers have a certain set of mental characteristics that prepare them to weather the storm of volatility. Farmers are hardy. They endure the tough times with hard work. They trust their own judgment and take risks that make them successful in business. But they also keep things to themselves and work in isolation. “Farmers hold things close to their

“

vest and are very proud,” says Mike Rosmann, a farmer from Harlan who also has a Ph.D. in psychology. “They want to be successful and be seen as capable. That makes it hard for farmers to fail. There’s more pressure to be successful.” Rosmann shares some pretty serious statistics, such as farmers are almost twice as likely to suffer from depression as the general population. “Farmers work harder when times are tough,” Rosmann says. “When they are overly stressed and not succeeding, they may feel like it’s their fault. Then the pressures of failure can lead to significant depression.” Unfortunately, farmers are highly unlikely to share their issues, problems

Farmers hold things close to their vest and are very proud. — D R . M I K E R O S M A N N , Farmer from Harlan

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”

or failures with those close to them. However, they are more likely to share concerns with a confidential source, such as the Iowa Concern hotline. Iowa Concern is a 24-hour hotline, originally established as Rural Concern in 1985 in response to the farm crisis. Backed by Governor Terry Branstad, Rural Concern fielded up to 900 calls a month from farmers. “Roughly 1,200 farms were facing foreclosure from federal lending programs and farmland values dropped more than 60 percent," he says. "To assist our Iowa farm families, we created the Rural Concern hotline, now the Iowa Concern hotline, which serves as a resource for the agricultural community in terms of legal, financial

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TIPS: • Face issues right away and talk to someone about problems instead of holding them inside. Being proactive and having a plan can make a big difference in the how the issue escalates. • Young farmers should consider finding a mentor or older farmer who has been through market ups and downs.

M A R G A R E T VA N G I N K E L , ISU Extension human sciences specialist and hotlines coordinator

and disaster assistance 24 hours a day, 7 days per week at no charge.“ Today the hotline is still a resource for those seeking someone to listen and help them sort through issues, says Margaret VanGinkel, Iowa State University (ISU) Extension human sciences specialist and hotlines coordinator. “Many times farmers may start

M A R G A R E T VA N G I N K E L , Iowa Concern hotline coordinator

counselors. Currently about 15 percent of the phone calls Iowa Concern receives are related to farming, an uptick from the 9 percent average before recent market volatility. VanGinkel reminds farmers to talk to someone, especially young farmers who may be dealing with new issues. “Turn to your clergy or neighbor,” VanGinkel says. “Find a way to talk your problems over with Having a plan will remove the emotion and someone instead anxiety that market ups and downs may cause. of having it build up inside. worrying about things that are not as Paul Lasley, Ph.D., and professor big of issues as they think they are,” of rural sociology at ISU reiterates VanGinkel says. “They need to face the the importance of communication problem first. Go and talk to the lender with lenders, landlords, partners and or landlord. Face the problem up front. spouses. Being transparent, even Maybe the problem isn’t as big as they with yourself, about the situation is thought it would be.” important. The hotline has received more than “Things are uncertain and no one 350,000 calls since its inception and has a crystal ball on the next two to offers not only an open ear any time of five years,” Lasley says. “As a result, day, but also connections to mediators, producers need to consult a variety of law advisers and psychological sources and make a contingency plan.”

• Iowa Concern is a 24-hour, confidential hotline that can connect farmers to resources. The toll-free number is 1-800-447-1985.

Having a plan will remove the emotion and anxiety that market ups and downs may cause. When looking for help, Lasley suggests Iowa Concern be the first call. The hotline is a wealth of information and provides referrals to resources across a variety of topics and needs. “Outreach efforts provide confidential assistance to those who need it,” Lasley says. “Each farmer and farm situation is different, and the hotline offers a cafeteria of assistance for farmers in need.” Rosmann also recommends calling the Iowa Concern hotline and seeking mentors among farmers who may have been in the business for a while and can offer advice. He encourages people to be realistic about the nature of farming. “We are in a recession right now, but we certainly had a boom period from 2008 to 2014,” Rosmann says. “We will have another era where things get pretty good again in two, three or four years. That’s farming.”

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