Iowa Soybean Review | October 2022

Harvest Time in Iowa

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President

Randy Miller, Lacona | D8

President-Elect

Suzanne Shirbroun, Farmersburg | D3

Secretary

Jeff Frank, Auburn | D4

Treasurer

Brent Swart, Spencer | D1

At-Large Director

Tom Adam, Harper | D9

Board of Directors

Chuck White, Spencer | D1

April Hemmes, Hampton | D2

Casey Schlichting, Clear Lake | D2

Rick Juchems, Plainfield | D3

Marty Danzer, Carroll | D4

Morey Hill, Madrid | D5

Dave Struthers, Collins | D5

Robb Ewoldt, Davenport | D6

Dave Walton, Wilton | D6

Scot Bailey, Anita | D7

Lee Brooke, Clarinda | D7

Warren Bachman, Osceola | D8

Pat Swanson, Ottumwa | D9

Tim Bardole, Rippey | At Large

Steph Essick, Dickens | At Large Lindsay Greiner, Keota | At Large

Brent Renner, Klemme | At Large

American Soybean Association Board of Directors

Morey Hill, Madrid Wayne Fredericks, Osage Brian Kemp, Sibley

Jeff Jorgenson, Sidney Steph Essick, Dickens Dave Walton, Wilton

United Soybean Board of Directors

Tim Bardole, Rippey Lindsay Greiner, Keota April Hemmes, Hampton

Staff Credits

Editor | Bethany Baratta

Sr. Dir., Information & Education | Aaron Putze, APR

Creative Manager | Ashton Boles

Photographer | Joclyn Bushman

Writer | Joseph Hopper

Writer | Jeff Hutton

Writer | Kriss Nelson

Public Relations Manager | Brock Johnston

Iowa Soybean Review is published monthly by: Iowa Soybean Association 1255 SW Prairie Trail Parkway, Ankeny, Iowa 50023 (515) 251-8640 | iasoybeans.com

E-mail: bbaratta@iasoybeans.com

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October 2022 | Vol. 35, No. 1

6 Executive Directors

Meet the five farmers named to ISA executive board.

8 Production Hurdles

Farmers discuss how rising input costs affect their operations.

12 Iron Sales Explode

Availability of used machinery boosts sales.

20 Fertilizer Factors

Learn about the factors influencing fertilizer production and costs.

On the Cover: A combine takes on soybeans in a post-flooded valley near Fort Atkinson in 2021. Soybean farmers in Iowa harvested nearly 622 million bushels of soybeans in 2021. The U.S. Department of Agriculture’s National Agricultural Statistics Service forecasts 591 million bushels of soybeans will be harvested in Iowa this year.

People Power

Harvest is in full gear. That means cooler temperatures, college football Saturdays (Go State!) and the waning days of another growing season.

The Iowa Soybean Association’s (ISA) 2022 program year concluded Sept. 30. It was productive, highlighted by an increase of nearly 700 farmer members (the second consecutive year we’ve exceeded our membership goal). As I pen this column, more than 14,200 soybean farmers actively engage with the association more directly and frequently, an increase of 1,552 from just two harvests ago.

Much like you keep an eye on your yield monitor, we closely track membership. It’s people who power ISA’s success. Our ability to influence big issues benefiting the soybean industry directly correlates to involved and engaged members. Farmer input is critical to everything we do as an association.

You also rely on inputs to make your farm work – from

Executive Insights Kirk Leeds, ISA Chief Executive Officer kleeds@iasoybeans.com

equipment, seed and fertilizer to data, energy and labor.

In this edition of the Iowa Soybean Review, we focus on these important resources and the impact of supply chain disruptions (like war and transportation bottlenecks) on their price and availability.

While events like Russia’s invasion of Ukraine and long waits at our nation’s ports are beyond your control, you have an ultimate say in the amount of input you provide to ISA.

Participating in our research trials, district summer meetings, Winter Soy Summit and Innovation to Profit Conference (mark your calendars now for Thursday, Feb. 16, 2023), along with making your voice heard to elected officials are several ways to engage with purpose. So, too, is serving on the ISA board (welcome Dave Struthers of Collins, who was installed last month as District 5 director).

We also offer farmers the opportunity to provide input courtesy of a host of innovative

programs. They include the Iowa Food & Family Project, Policy Leaders Fellowship, Experience Class and Communications Squad. These activities, funded by checkoff and non-checkoff resources, are most effective when farmers are actively involved.

As you complete another soybean harvest, consider ways you can share your input with ISA. Hearing directly from farmers about what truly matters to you and your family is incredibly impactful. Your input can also be a reality check, helping us understand what motivates a farmer to grow soybeans and how ISA can make your journey to next year’s harvest more fulfilling and profitable.

It’s people who power ISA. Get behind the wheel to ensure we’re Driven to Deliver in ways that matter.

P.S. If you’re not an ISA farmer member, sign up today at no cost at iasoybeans.com/membership!

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Farmers Named to ISA Board of Directors

BY BROCK JOHNSTON

The Iowa Soybean Association (ISA) board of directors elected Suzanne Shirbroun of Farmersburg as presidentelect during its September meeting held in Ankeny.

Shirbroun was first elected as a District 3 director in 2016. She and her husband Joe manage a sixth-generation diversified row crop and seed business in Clayton County. They’ve been long-time participants in ISA production research activities and advocates for the soybean checkoff and agriculture.

“It’s a privilege to have the opportunity to represent Iowa’s soybean farmers in this capacity,” says Shirbroun who most recently served as ISA secretary. “From market development to international trade, increased demand

for high-quality soy is driving farmer optimism heading into the new year. As stewards of soybean checkoff dollars, the ISA board will continue advancing issues directly benefiting Iowa soybean farmers.”

Also elected to one-year terms as ISA officers were: Brent Swart of Spencer (Clay County), treasurer; Jeff Frank of Auburn (Sac County), secretary; and Tom Adam of Harper (Keokuk County), at-large.

Immediate Past President Robb Ewoldt of Davenport handed the gavel off to Randy Miller, who was seated as ISA president.

“Members of the executive committee are passionate, experienced and focused on a wide range of industry interests,”

adds Shirbroun. “Whether it’s soybean research, demand or education, we look forward to growing opportunities for Iowa soybean farmers and positioning the oilseed and industry for continued success.”

ISA directors also re-elected Steph Essick of Dickens (Clay County); Morey Hill of Madrid (Boone County); and Dave Walton of Wilton (Muscatine County); as directors on the American Soybean Association (ASA) board. In addition, Pat Swanson of Ottumwa (Wapello County), will join the ASA board for a first term beginning in December.

Contact Brock Johnston at bjohnston@iasoybeans.com

The 2022-2023 Iowa Soybean Association executive directors: Jeff Frank (Auburn), secretary; Tom Adam (Harper), at-large director; Randy Miller (Lacona), president; Suzanne Shirbroun (Farmersburg), president-elect; and Brent Swart (Spencer), treasurer.

MORE BUSHELS ARE OUT THERE.

Farmers share how they’re overcoming rising input costs

Production Production Hurdles

BY JOSEPH HOPPER AND DEVIN BENISH

Nobody knows farming better than a farmer. We asked four ISA farmer-members to weigh in on how input prices affect their business and what they expect in the future.

RANDY MILLER

How are you navigating rising input costs?

We’re evaluating what we use and our application methods within fields. I’m not shopping around at different suppliers. We’re trying to wait until the best time possible to lock inputs in and go from there. Hopefully, that will allow us to lock in a break-even so we can achieve a profit sometime in the marketing year.

Are prices affecting your short-term or long-term plans?

You have to be concerned about it in the short term. With drier conditions this year, our yields will be off. That’s going to damper our break-evens because lower yield makes your break-even higher. It’s hard to make plans for next year, but you can’t wait and start over again — the years blur together. I’m positive about agriculture in the long-term based on people having to eat and the demand for energy, among other things. There are a lot of headwinds out there, but overall, I’m fairly bullish.

ROBB EWOLDT

How are you navigating rising input costs?

We are trying to watch how we spend and look at the numbers to ensure that if we spend that amount of money for our full fertilizer program, we will still be profitable. If we’re not profitable it may require some reduction in fertilizer input. We need to have a return, and if we don’t see it, we will have to make some changes. I worry about this scenario because I worry about not producing the maximum amount of food per acre. That’s a big concern, especially when we hear about the drought in Europe, the war going on in Ukraine and some areas of the United States with drought. It’s a big, big issue.

Are prices affecting your short-term or long-term plans?

I think it’s both. When we have bad years production-wise, it takes more than one year to make up for those years. I truly believe food is security worldwide. We need to figure this out. In my mind, we need to have the president step in and try to relieve some tariffs on fertilizers and give us a little break. When these tariffs hit, it’s amazing how the price of fertilizers jumped.

Production Hurdles

JACOB BOLSON

How are you navigating rising input costs?

No. 1 is ensuring that I am making input purchase decisions as early as possible to maximize preseason discounts. Input prices and interest rates are up at the same time, increasing our overall cost of doing business.

I’m also exhausting all my options for cost share opportunities. I view cover crops as an input; they are a required part of how I operate my land. As a result, I am exhausting all my possible cost share options for cover crops. Not only are traditional inputs up, but nontraditional inputs like cover crops are also up due to seed demand, freight costs and increased applications.

Are prices affecting your short-term or long-term plans?

As a beginning farmer, where 2023 will only be the third year of my family raising our own crop, we’ve got a couple of headwinds. There are limited acres to spread our costs over, and we don’t have the historic equity that would help us weather some of the more difficult times. When it comes to capital expenditures, I have to be very diligent on my purchase decisions. As I share these comments, just today I was on the verge of making an equipment purchase until I invested the time to chat with members of a peer group that I’m part of, and as an outcome of those conversations, I’m refraining from making the equipment purchase.

I do not foresee input prices dropping as we all want them to. Structural costs continue to rise for manufacturers in all industries around us, including crop input manufacturers. Fundamentally, as producers, both short-term and longterm we must be diligent at managing our costs and seeking cost-control measures plus cost reduction opportunities.

SCOT BAILEY

How are you navigating rising input costs?

I check with a lot of the suppliers in my area and try to book in advance. I try to buy inputs in bulk and, on the chemical side, go with more generics. On fertilizer, you might have to change how you’re crediting your soil samples to come up with a prescription on where you’re going to apply.

We’re using variable rates on everything, and looking at changing up timing on applications. I might change when I apply. I’m usually a spring applier, and I might go ahead and switch to fall, depending on how it looks.

Are prices affecting your short-term or long-term plans?

It depends on how trade goes with other countries. A lot of the ingredients for our chemicals are made in other countries, so our plans depend a lot on trade. It’s trade and tariffs. When the country is not having to pay tariffs, it just increases our prices.

Contact Joseph Hopper at jhopper@iasoybeans.com

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Iron Sales Explode

Online sales have expanded opportunities for buyers and sellers

BY BETHANY BARATTA

Supply chain disruptions have squeezed the availability and pricing of fertilizer and other inputs. These interruptions also impact the availability of new tractors, combines and other equipment farmers use on the farm.

Needing the iron to plant, harvest and go about their jobs, farmers are looking at used equipment to fill in the gaps.

“We’re in an interesting time in agriculture right now,” says Tim Meyer, an auctioneer for Steffes Group, Inc., a leader in marketing farm, construction, transportation equipment and land sales in the Midwest. “We have unprecedented markets right now based on supply and demand.”

Steffes Group sold 1,469 tractors, 365 combines and 24,678 acres of land at 697 auctions across 11 states in 2021.

Conversations with equipment dealers early in 2022 indicated they were at the auctions to fill their lots, and everything those dealers had coming in their lots for the 2022 season was already sold. The same dealers were still waiting on implements delivered later than anticipated due to supply chain snags amid COVID-19.

“We’re offering bidders and buyers something they can’t get anywhere else: the opportunity to physically take a piece of equipment home the same day,” Meyer says.

Akin to 2013, used equipment dealers have been among the largest group participating in live and online sales in 2022, Meyer says.

“The last time equipment dealers were buying equipment at auctions was in 2013. They are looking to fill their lots with something to sell, even if it is used,” he says.

Higher commodity prices and generally positive farmer sentiment give strength to demand as well as prices.

“Equipment across the board is 30% higher than it was 18 months ago,” Meyer says. “Even with the threat of rising interest rates, equipment demand is still strong.”

He notes tax consequences especially heading toward the end of the year, create an urge to spend money on necessary farm equipment.

High in demand are pre-DEF tractors, grain trailers with hopper bottoms and livestock trailers. However, the highest

demand is for late model low-hour equipment due to the complications of buying new.

Land market

Steffes Group sold more than 24,000 acres across the Midwest in 2021. More than 80% of Iowa farmland is unencumbered, without loans and liens. Iowa farmland sales reject typical supply and demand economics; when Iowa farmland prices rise, lands available for sale typically follow upward.

“We’re selling three times the amount of real estate in Iowa as we were a year or two ago,” Meyer says. “Land is at an all-time high, so it seems like there is more interest in selling it today. We will see less land for sale as the price goes down.”

Iowans are purchasing the majority of Iowa farmland, namely, existing neighbors to the farmland, who benefit logistically by having land in proximity to the other fields they already own.

Trucks and construction equipment

In addition to land and other common farm equipment, Steffes sells trucks, semis and construction vehicles.

Meyer says the truck market has softened a bit over the past quarter.

“The goods are getting moved, the contracts are more competitive and the over-the-road job market is not as lucrative as it was a year ago,” he says.

Construction iron, on the other hand, is following the same upward trajectory as the ag market.

“There’s a huge demand for construction equipment right now due to announced and expected infrastructure projects,” Meyer says.

Auction traffic

Meyer says that the demographics of Steffes’ sales have shifted in recent years.

Internet sales have transformed the business, he says. A live sale also has an option to include online bidding, opening up the same to a world of buyers.

While most land buyers are present physically at the sale, more than half of the equipment purchased on a live sale is bought online.

“Some come to sales for the atmosphere, but people like the convenience of buying online,” Meyer says.

What was once an in-person event, allowing farmers to kick the tires and look under the hoods of equipment up for bids, the pandemic accelerated the comfortability of online buying.

Buyers ages 60 and older make up the largest demographic of those bidding online.

Before COVID-19, about 15% to 20% were decidedly in-person buyers, unwilling to buy online.

“Those people found nephews, wives, an equipment dealer or a banker to help them get registered to bid and buy,” Meyer says.

Today, he estimates that fewer than 10% of their customers are not willing to buy online.

Steffes has expanded sales opportunities for buyers and sellers to host a live sale with online bidding.

“We’re moving equipment all over the world with our online platform,” he says.

With more than 130,000 registered bidders online, Steffes sold to buyers in nine countries and nearly every state in 2021.

Contact Bethany Baratta at bbaratta@iasoybeans.com

Buying or selling? MEYER PROVIDES THESE TIPS:

• Do your due diligence: Call the seller or auctioneer before the sale to learn more about the equipment up for bid. Or hire a mechanic close to the auction to check the equipment for you.

• Make sure you’re comfortable with the description and pictures you find online. It truly is an easy process.

• The highest number of farm ground sales is in November, more so than any other month of the year.

• Farm equipment sales are hottest in December when farmers can defer or spend money at the end of the year.

Regenerative Agriculture

Let nature work for you

BY KRISS NELSON

Accurate placement of nutrients not only brings an economic benefit but an environmental one as well. To help achieve the goal of providing the plant with the food when it needs it, producers should look to the 4R Nutrient Stewardship program.

“The 4Rs are important from not only an agronomic perspective, but also soil health and water quality,” says Evan Brehm, Iowa Soybean Association (ISA) conservation agronomist.

The 4R concept incorporates the right fertilizer source at the right rate, time and place.

Brehm says being mindful of the nutrient sources used for fertilizer and using split applications of nitrogen work toward 4R stewardship efforts. Also tissue sampling or sap analysis tests help optimize crop health and nutrient management.

“We can use in-season field imagery to help us locate areas that may need more nutrients than others, so we are putting those nutrients in the right place,” Brehm says.

Regenerative agriculture

One practice to consider in achieving the 4R Nutrient Stewardship goals is regenerative agriculture – a continual system involving agriculture and nature working simultaneously.

“We want to work with nature, not against it,” says Brehm. “We view soil as a living, breathing system. It is a continuous process as we feed the soil microbes they feed our plants, which in turn produces the crops we want.”

Nutrient sources

Regenerative agriculture also includes regenerative nutrient sources, Brehm says.

Mike Bretz embraces the 4R concepts on his farm near North Liberty.

RIGHT SOURCE

Matches fertilizer type to crop needs.

WHAT ARE THE 4Rs?

“It is a holistic system in the soil where the plants start to mine and find nutrients, such as phosphorus in our soil,” Brehm says. “With rising input costs, we want to make the most of fertilizers and products we have, and using regenerative principles allows for us to do so.”

Mike Bretz of North Liberty started the journey toward regenerative agriculture three years ago.

“I was inspired to reduce input costs while improving soil, water and air quality as well as enhancing the nutrient content of our crops,” says Bretz.

Bretz Farms is practicing 100% no-till. They grow 120 acres of non-GMO corn; 120 acres of soybeans; 120 acres of oats, wheat or rye; and 80 acres of pasture and hay with a multi-species cover crop between the rotations. They also have a 60-head cow/calf herd in a grass-fed operation.

As in nature, soil biology converts nutrients and minerals into usable forms for the crops to uptake. When making nutrient input decisions, Bretz says he relies on results from a spring Haney soil test – a test determining what quantity of soil nutrients are available to soil microbes. They follow up with a sap analysis test in June that reveals what nutrients the crops need. There is also an opportunity to make a foliar application.

Bretz says he has not applied potassium or phosphorus for the last three years. Regarding nitrogen application in his corn, he side-dressed 60 pounds of nitrogen per acre this year. His soybeans are fed from nutrients in the soil and don’t receive synthetic fertilizer.

“We try to avoid activities that kill soil biology, such as tillage, anhydrous ammonia and other synthetic chemical applications,” Bretz says.

RIGHT RATE

Matches amount of fertilizer type crop needs.

RIGHT TIME Makes nutrients available when crops need them.

Embracing biology

Instead, they embrace activities to support the growth of soil biology, such as adding multi-species cover crops and getting livestock back on the farm ground.

“More biology in a healthy soil leads to nutrients and minerals becoming available to the plant, which leads to reduced input costs,” he says. “Tillage is especially hard on biology as it also crushes the home in which the biology lives. Healthy soil improves soil aggregation, improves water infiltration and reduces water runoff into streams.”

Rather than purchasing nitrogen, phosphorus, potassium or other synthetic fertilizers, Bretz prefers to use cover crops, including rye, hairy vetch and daikon radish. The radish, for example, grows deep into the soil, breaking up compaction. Rye develops a vast root mass and helps to tie up nitrogen, making the nutrient available to crops in the spring. Together, these cover crops help improve the soil so worms can do their job and help with water infiltration.

“We are minimizing inputs as much as we can,” he says. “We have used some organic nutrients, such as emulsified fish fertilizer, which adds a little nitrogen and is not harmful to the biology in the soil. Nature wants to do the work for us.”

What advice does Bretz have for fellow farmers interested in regenerative agriculture?

“Go no-till if you haven’t already done so. Add variety to your crop rotation and allow nature to convert nutrients. These efforts will go a long way to support soil, water and air quality initiatives.”

Contact Kriss Nelson at knelson@iasoybeans.com

RIGHT PLACE Keep nutrients where crops can use them.

“We want to work with nature, not against it. We view soil as a living, breathing system. It is a continual process as we feed the soil microbes they feed our plants, which in turn produces the crops we want.”

-Evan Brehm

HELPING YOU DELIVER ON DEMAND

Whether it’s improving soybean meal to outperform the competition or promoting the sustainability of U.S. soy, the soy checkoff has been working behind the scenes to help farmers satisfy their customers’ needs. We’re looking inside the bean, beyond the bushel and around the world to keep preference for U.S. soy strong. And for U.S. soybean farmers like you, the impact is invaluable.

See more ways the soy checkoff is maximizing profit opportunities for farmers at unitedsoybean.org

MEET

Jeff Cuddeback

BY JOSEPH HOPPER

Editor’s note: We occasionally feature farmers from across the state. Have someone we should meet? Email Bethany at bbaratta@iasoybeans.com.

For Jeff Cuddeback, farming has been the family business for as long as anyone can remember — he’s a 10thgeneration farmer. The family came to America in the late 1600s, arriving in Iowa from Illinois in the early 20th century. And ever since, the family has farmed in Washington County. After more than two decades in the corporate world, Cuddeback joined his father on the family farm four years ago.

“One thing I love about agriculture is being outdoors,” Cuddeback says. “I was locked up in an office for 20 or so years. It was OK, but the older I get, the more I enjoy being outside and the freedom involved in being your own boss.

He adds, “I have a few friends who can no longer farm with their fathers, and it reminds me how lucky I am.”

It was an easy decision for Cuddeback to join the Iowa Soybean Association (ISA); his father is a long-time member. One of the aspects of ISA he appreciates is its work developing new uses and ISA’s role in keeping global markets open and promoting trade.

“I have felt over the years, there are a lot of forces working against agriculture,” Cuddeback says. “So, I think it behooves us as farmers to be passionate about our industry. If want to see production agriculture flourish, we better be involved.”

One of the ways Cuddeback has been involved with ISA is by participating in water quality studies, where tile lines are monitored regularly. Water quality is a big deal, he says.

“We want to be good stewards and don’t want to be contributors to environmental problems,” says Cuddeback. “If we’re going to continue and try to feed our country and the world, we need to continue figuring out how to do it sustainably and responsibly.”

Contact Joseph Hopper at jhopper@iasoybeans.com

SOY SNAPS

BY JOCLYN BUSHMAN

New Holland tractor with Mitas tires showcasing floatation in Boone.

Round bales sit at the Kalona Sale Barn.

Alley view at the Farm Progress Show in Boone.

Knox Kuboushek examining the new Kubota equipment at the Farm Progress Show.

A roadside farm view in Washington County.

A hen in the morning sunlight near Clarion.

A single horse poses outside of Madrid. A Holstein cow peeks from a feed bunker near Maynard.

A DIY honey sign outside of Washington.

Fertilizer Factors

To help understand the factors impacting the price of fertilizers, we asked Jason Troendle, director of market intelligence and research at The Fertilizer Institute (TFI), to weigh in.

BY BETHANY BARATTA

Farmers have seen significant price increases in fertilizer prices; what’s contributing to this?

Within the last two years in the fertilizer industry, we’ve had a perfect storm of issues that have caused the prices growers are seeing today. One of the key things we continue to see is rising input costs for fertilizer production. The production of nitrogen fertilizers is heavily reliant on natural gas, for example. Natural gas prices are around $7.80 per million British thermal units (Btu), up nearly 300% from a year ago.

Sulfur – used to make DAP, MAP and phosphate fertilizer – also has seen an increase in prices related to supply challenges.

Meanwhile, we’ve seen significant trade/market disruptions domestically and abroad. The February 2021 freeze and Hurricane Ida lessened domestic production. Various geopolitical challenges have restricted exports.

How have the Russia-Ukraine conflict and other geopolitical events impacted the industry?

Even before the Russia-Ukraine conflict, Russia put quotas on fertilizer

exports. Since the war began, fertilizer exports from Russia have continued to be disrupted, as well as natural gas flows for European nitrogen producers.

Meanwhile, the U.S. and other countries put sanctions on Belarus due to the actions of their government. Belarus produces and exports about one-fifth of the global potash supply. More recently, Belarus seems to have an agreement with Russia to move some potash into Russia and out from there to the worldwide market. It is yet to be seen how this will impact the global market.

China put in export restrictions that essentially took the product off the market in late 2021, which

has continued into 2022. China has historically accounted for 25% of the global phosphate market. Any time you cap or reduce the global supply, it puts upward pressure on price.

In 2021, the U.S. had more fertilizer imports of nitrogen, phosporous and potassium (N,P,K) than the average level of imports between 2017-2020. In 2020, phosphate fertilizer imports from Morocco and Russia were affected by countervailing duties on products from those countries. Today we’re sourcing phosphates from more countries, such as Saudi Arabia, Jordan, Australia, Mexico and Lithuania, due to continued strong demand.

What can be done to increase fertilizer supplies or produce more domestically?

In the short run, there’s not a quick lever we can pull to have a large increase in supply, unfortunately. Nitrogen facilities and phosphate and potash mines take significant capital investments to build and a few years to bring online.

At the same time that we have seen supply challenges, we’ve also seen a jump in total nutrient demand. From the 2019-2020 growing season to 20202021, we’ve seen a 6% increase in global demand for nutrients—(N, P, K).

The U.S. has one of the most efficient, environmentally friendly, robust domestic fertilizer industries globally.

We’re producing just as much nitrogen today in the U.S. as in 2000 with slightly fewer and more efficient facilities. One of the challenges is access to natural gas to produce nitrogen and being able to remain globally competitively with low-priced natural gas in Russia and other locations. Access to an affordable and reliable natural gas supply could help facilitate further investment in the industry.

Phosphate and potash (potassium) are both mined minerals. While the U.S. is blessed with phosphate, it can

be upward of 12 years to get a permit to expand or open a mine, limiting the industry’s ability to respond efficiently or effectively when global supplies are reduced. There are very limited potash reserves in the U.S., leading to heavy reliance on Canada and imports for those nutrients.

What is TFI’s role in balancing the needs of farmers and the fertilizer industry?

As a representative of the industry, we’re trying to share what’s going on with the fertilizer markets so people are informed and can make appropriate business decisions. Understanding the industry drivers can help mitigate some risks in this volatile environment.

With high farm input costs, including fertilizers, everyone wants the products we’re putting on the field for the crop to be used as efficiently and optimally as possible. TFI, fertilizer producers and retailers promote the use of 4R practices – using the right source, the right rate, the right time and the right place – when growers are applying nutrients to help achieve this goal.

The industry is also constantly looking for innovations to improve nutrient use efficiency. We’re working with the Environmental Protection Agency through the Next Gen Fertilizer Challenge to advance agricultural sustainability in the U.S. by improving the efficiency of fertilizers to increase crop yields while reducing the impact of fertilizers on the environment.

What else should growers know?

We recognize this is a challenging time, and we don’t take that lightly. We highly encourage growers to work with their retailers and suppliers and utilize any tools they can to mitigate risk.

Contact Bethany Baratta at bbaratta@iasoybeans.com

What are you watching that will impact pricing and availability to farmers?

1. The Russia-Ukraine conflict: What that means for global energy and fertilizers.

2. Natural gas prices: We’ve seen those fluctuate with the Texas export facility fire and other disruptors. We’re trying to make up for some of the lack of Russian natural gas to Europe with U.S. natural gas exports. How do all these items affect the cost of natural gas domestically for our fertilizer production?

3. Crop success: How it translates to fertilizer demand for fall and next spring.

4. Natural disasters: Are we going to have another hurricane or an unexpected winter storm that will cut off a percent of our natural production as it did with Hurricane Ida or the Storm Uri?

5. China: They were supposed to start exports in June but largely haven’t. If they ease exports restriction, it will allow more products to flow onto the global market, which will help. But when?

6. Demand: Where will commodity prices be and what will farmers’ decisions be in terms of what crops they plant and how much fertilizer to apply? If farmers change planting plans or application rates and it softens demand, it changes the market.

In the Palm of Your Hand

Finding farm labor through an app

BY JEFF HUTTON

It’s an overused analogy, but for the past few years, finding good employees to work on the farm has been as difficult as finding a needle in the proverbial haystack.

Mike Hofer struggled to find committed and experienced farmworkers on his Clinton County farm.

“I had been looking for over a year to find a part-time driver,” he says.

Traditional newspaper ads, headhunters and even generic web-based sites might yield some results, but too often, those efforts have proven unsuccessful.

But a new internet app, designed with the agricultural industry in mind, changed Hofer’s luck.

Welcome to FarmPost

Hofer was introduced to the FarmPost app just a few years ago by Michael Schaeffer, CEO of FarmPost Inc., based in DeWitt in eastern Iowa.

Schaeffer, who helped to create the app, connected Hofer to it, and once it was installed, successfully assisted Hofer in finding that part-time driver within two weeks.

“I had three good applicants who responded; the guy I picked is still with me,” Hofer says. “With those other avenues, you’re not always hitting your target audience. The app appealed to me and it worked.”

Schaeffer, who previously managed a large swine operation in eastern Iowa, says a constant struggle over the years has been finding good employees, especially those with a farming background.

“The one thing we would run into is that we knew that help was out there, but we had no way to contact them,” directly,” he says.

“I just started talking to our customer base, asking what we could do to find employees.”

Through hundreds of conversations, the development of the app surfaced.

“In the beginning, I had no guidance; I was just winging it,” Schaeffer admits. “I’m not someone who sits still very easily.”

So, he researched companies who could help him develop the app since he had no technology background and began crafting a site where both employers and employees could connect.

After interviewing third-party app developers, Schaeffer says he found a company to help him with the app and they have been on board ever since the creation of the app in 2018 and its broader release in 2019.

Initially, the FarmPost app was designed to focus on eastern Iowa and Schaeffer’s customer base.

“But in the first couple of months, we had several thousand downloads across the United States,” he says. “It just took off from word of mouth.”

FarmPost’s reach has been much greater than just the Midwest.

“We’ve filled jobs for ranchers in Texas, cowboys in Wyoming, specialty crops in Florida, cannabis crops in Oklahoma … We’ve been successful across the country.”

Schaeffer says the app was a hit right away because the farm labor shortage, coupled with the COVID-19 pandemic, has accelerated the needs of those in the ag industry.

“The industry is taking a huge hit; COVID changed a lot of things,” he says. “We’re still trying to fill jobs, and for many, it’s been more difficult to find quality applicants.”

And while FarmPost is making a dent in the job market effort, the app is proving to be relevant in other ways.

“Our users want more. There are lots of gaps in the ag industry,” Schaeffer says.

For example, he notes that custom farming is happening everywhere, yet it’s an untapped market. The app, he says, now lists ads for custom farming and farm equipment sales.

“We want this to be a full-on ag marketplace because there is a need,” Schaeffer says.

What’s next?

As to the future of the app, which can be downloaded onto a desktop computer, laptop or cell phone (through Google Play Store or the Apple App Store), Schaeffer believes the core mission will always be to connect employers with employees.

But the expansion as an ag marketplace, be it custom planting, custom harvesting or farm equipment sales, is just the beginning.

“We will always focus on finding farm help, but once we fill those jobs, are there other ways we can throughout the year?” Schaeffer says.

The work is paying off – FarmPost was named the 2022 Ag Tech Breakthrough Award winner for Overall Harvest Solution of the Year.

For Schaeffer, helping farmers succeed is the only award he’s interested in achieving.

I have a passion for agriculture,” he says. “Knowing how we’re helping and changing the industry has been rewarding.”

For more information, go to http:// www.farmpostapp.com.

Megan Decker contributed to this article. Contact Jeff Hutton at jhutton@iasoybeans.com

Farmers Unite

Policy, research, networking and fun were highlights of nine ISA district meetings

BY KRISS NELSON

From a cruise on a lake to axe throwing to baseball and more, the Iowa Soybean Association’s (ISA) summer district meeting series offered something for everyone.

FMC sponsored the nine meetings; each event provided opportunities to learn more about ISA’s Research Center for Farming Innovation (RCFI) and policy advocacy, as well as a chance to meet ISA’s board of directors and find ways to engage in various ISA opportunities available to farmer members.

“This year’s district meeting series gave us an opportunity to be in every district, meet with our farmer members and learn what’s top of mind for each of them,” says Bre Wagner, ISA producer services manager. “ISA staff and farmer directors shared updates covering topics from biofuels to ag policy and soy transportation to ISA RCFI.”

Steph Essick, ISA at-large director from Dickens in northwest Iowa, says she appreciates the opportunity to speak with farmers at district meetings.

“It’s important to have district meetings to hear what farmers are concerned about and what is top of mind for them right now,” says Essick.

With a hatchet in hand, Kurtis Stockdale aimed at his target. It was a bull’s-eye for Stockdale and his wife at the District 3 event held at the Hurling Hatchet in Cedar Falls – a meeting they say was educational and fun.

“We got to hear a little more about ISA and what they’re doing,” he says. “As a farmer, we don’t always get a chance to visit and meet with other farmers.”

District 9’s meeting involved a tour of Lock and Dam No. 19 near Keokuk, which proved informational to attendees on how cargo is shipped up and down the Mighty Mississippi.

“It is a great opportunity for all of us to get together and talk about the issues that are important to our farmers,” says Pat Swanson, District 9 board director from Ottumwa. “It is important to see a lock and dam and understand the infrastructure that transports soybeans and other commodities to our customers worldwide.”

In District 1, attendees set sail during West Lake Okoboji’s Shake the Lake event. The gathering was the first time attending a district meeting for farmer member Mike Ver Steeg from Inwood.

“It was a great night out with my wife on the lake,” he says. “Food was good, and the company was good.”

social at the Iowa State Fair for District

5. He provided an update on manure, cover crop and relay cropping trials occurring at ISA. He explained the conservation agronomist network at ISA, including conservation cost share opportunities, such as the North Racoon Soil and Water Outcomes RCPP.

After the meeting, Porepp engaged with several farmers, inquiring about the North Raccoon RCPP and other farm research opportunities.

“ISA’s district meeting at the Iowa State Fair was an awesome opportunity for farmers in District 5 to learn about RCFI and the opportunities to engage with us,” says Porepp. “Overall, this was a great event, and the RCFI staff looks forward to working with these attendees to help improve the agricultural landscape across Iowa.”

Throughout the series, Michael Dolch, ISA director of public affairs, and Megan Decker, ISA public affairs and producer services intern, shared updates on ISA’s policy efforts, including the passage of the biofuel access bill and a new all-systems weight permit on the state level.

– Ken Perkins of Bonaparte in Van Buren County

Making connections

ISA Producer Services Coordinator Kennady Moffitt says ISA’s district meeting series is an excellent chance for farmers to get a taste of what ISA is all about and see if they would like to take their membership to the next level.

“Farmers can learn about program areas they could potentially fit into and be interested in,” she says.

Ben Porepp, ISA conservation agronomist, attended the ice cream

“It’s important for our farmer members to understand what is going on at state and federal regulatory levels and how those issues impact their farm now and potentially will in the future,” she says.

The district meeting series was an opportunity to collaborate with farmers to bring a stronger voice to the state and federal levels.

“We help farmers tell their story,” Decker says. “In Washington, D.C., all six of our congressional leaders take our organization seriously and let us tell our farmers’ stories. However, we still need a strong coalition of farmers to share and help us understand their needs and how we can meet them as an association.”

“You have to get involved. ISA is a grassroots organization; if you don’t tell them what you want, they don’t know. You have to communicate, get out and be an ambassador.”

Ken Perkins of Bonaparte in Van Buren County says he tries to attend as many ISA district meetings as possible, where he takes the opportunity to visit with ISA directors and other farmers.

“I appreciate the Iowa Soybean Association putting on these types of meetings,” he says. “You have to get involved. ISA is a grassroots organization; if you don’t tell them what you want, they don’t know. You have to communicate, get out and be an ambassador.”

Member input

The producer services team is already brainstorming ideas for next year’s district meeting series and looks forward to hearing from what farmer members are interested in seeing and touring for future district meetings.

“Farmers know best; hearing their feedback is most beneficial,” adds Moffitt.

Contact Kriss Nelson at knelson@iasoybeans.com

Shared Vision

IAWA Business Council working together for water quality

BY JEFF HUTTON

Improving water quality in the state without sacrificing profitability for Iowa’s farmers.

That’s at the heart of the Iowa Agriculture Water Alliance (IAWA) and its 20-member business council, all of whom are committed to substantive changes that have and will continue to make positive differences statewide.

But how do you make that happen?

Moving the needle

“IAWA Business Council members implement the Iowa Nutrient Reduction Strategy in a number of important ways,” says IAWA Executive Director Sean McMahon. “That includes assisting farmers improve their resource use efficiency. Agribusinesses play an integral role in improving water quality by helping producers use less fertilizer and crop protection products per bushel of corn and soybeans produced.”

Indeed, two of those council members, say they are walking side by side with IAWA on this important journey.

Dave Schwartz is vice president for strategic retail accounts for Verdesian Life Sciences, a company advancing

plant health and nutrition through the development of nutrient management and efficiency technologies. Nutritionals and micronutrients, seed treatments, inoculants, crop health chemistry and biologicals, as well as soil surfactants are part of the Verdesian portfolio.

Schwartz says the company is committed to the 4R Nutrient Stewardship framework: Using the right fertilizer at the right rate, time and in the right place.

“We’re helping people to understand there are better ways to farm,” he says.

The company’s efforts in nutrient loss reduction and IAWA’s mission to protect water resources, led Schwartz and Verdesian to partner with IAWA. Verdesian was the first company that committed to being a part of the council.

“I’ve enjoyed being around the table and talking with others,” Schwartz says.

Schwartz believes IAWA, Verdesian and others have moved the needle on nutrient management and its mission to protect natural resources.

“We’ve significantly impacted the amount of runoff in Iowa’s farm fields,” he says. “Being a part of this

business council members

effort has been great. Together, we’re trying to make Iowa the centerpiece of water quality.”

Enthusiasm for the future

Like Schwartz, Mitchell Hora, CEO of Continuum Ag, says being a part of the IAWA Business Council is truly a simpatico relationship.

“Our mission is help family farms profit from improving their soil health and that directly results in positive outcomes for water quality, says Hora, whose company started as a consulting firm and has now scaled to an agronomic tech company providing soil, fertility and regenerative ag recommendations. The company evolved by launching its TopSoil Tool, which helps producers in 38 states and 16 countries take a more comprehensive approach to sustainable agriculture systems.

Being a part of the IAWA Business Council allows Hora’s company to work alongside those with the same enthusiasm and vision, including some of the biggest players in Iowa agriculture.Sustainable practices begin on his family farm in Washington County.

“I’ve seen it firsthand,” Hora says. “We’ve been practicing no-till since 1978 and implementing cover crops since 2013. I’ve seen the improvements on my seventh-generation farm. We know we can improve our profitability, improve our year-to-year resiliency, reduce carbon and improve water quality.”

The IAWA Business Council believes more farms across Iowa can do these things and become more profitable while improving water quality.

Making it happen

Hora and Schwartz have seen water quality efforts by other good organizations but say IAWA is at the forefront.

“IAWA goes to the frontline to oversee projects, educate and inform policymakers and enable actual change,” Hora says. “IAWA has been successful.”

McMahon says the council is eyeing long-term, positive change on the farm.

“Ag retailers, farmer-owned cooperatives, fertilizer companies, equipment companies, seed companies, crop protection companies and others have an important role to play in helping farmers improve return on investment and resource use efficiency by reducing inputs,” he says. “It’s exciting to see so many members of the IAWA Business Council making

positive impacts in improving farmer profitability and water quality. Improving nitrogen use efficiency and fertilizer management also directly reduces greenhouse gas emissions.”

For Schwartz, who also farms, it’s simple what Verdesian, the other council members and IAWA are doing:

“We’re leading this charge and getting people to realize there are better ways to do it,” he says. “It’s gratifying to share that with others.”

Contact Jeff Hutton at jhutton@iasoybeans.com

IAWA Business Council members and IAWA staff following a water quality field day at Mark Schleisman’s farm near Lake City.

Land Rates Rise

Iowa’s cash rental rates increased 10.3% from 2021

BY JEFF HUTTON

For farmers, the bottom line is profitability. But increasing input costs – everything from seed and fertilizer to fuel and equipment –continue to chip away at those profits.

Cash rental rates are also contributing to those increases. In 2022, those rates in Iowa, on average, increased by 10.3% from 2021 –roughly $232 per acre to $256, according to the most recent survey from Iowa State University Extension and Outreach.

It was, according to Alejandro Plastina, associate professor of economics at ISU, the third consecutive and largest uptick in cash rents since 2013, when rents peaked at $270 per acre – a level 5.5% higher in nominal terms than in 2022. By comparison, nominal corn and soybean prices received by Iowa farmers have declined by 16% and 11%, respectively, since mid-2013.

What’s behind the numbers?

According to the opinion survey, which is conducted from March to April each cycle, and then released every May, these numbers over the past year and the past decade is a combination of factors.

“Commodity prices are a definite driver of these cash rental rates,” says Plastina, adding higher government payments, COVID, land prices, and until recently, extremely low interest rates, have “injected a lot of liquidity into the ag sector.”

And with those lower interest rates, typically land values move in

the opposite direction, says the ISU professor.

“With interest rates at low levels, it provides support for higher land values,” Plastina says. “Higher land values typically translate into higher cash rental rates.”

And in 2022, those cash rental rates were felt statewide.

“There was considerable variability across counties in year-toyear changes, as is typical of survey data, but 95 out of the 99 Iowa counties experienced increases in average rents for corn and soybeans. Only Buchanan, Davis and Mahaska counties experienced declines in their overall average cash rents, while Black Hawk County experienced no change in average rent,” Plastina says.

“Even with the difference in land quality, there was nothing too out of the ordinary,” Plastina says. “All Iowa farmland is valuable and it’s been increasing.”

2023 and beyond

While Plastina was reluctant to

High-quality

increase from

to 2022

per acre

Low-quality land

increase from

to 2022 ($197 per acre to

make any specific predictions and the current 2023 survey will not be complete until March, the trend of seeing increases in cash rental rates is certainly a real possibility.

“It’s hard to say, but expectations are that we will not be seeing major spikes in interest rates, and that could indicate land values will not decline and cash rents might increase,” he says. “The trend would continue upward, but probably not as fast as we have seen.”

Plastina says survey respondents, especially younger producers as well as established farmers, have indicated they are concerned about cash rental rates, especially since their drop after their peak in 2013

was “much slower than the drop in corn and soybean prices.”

“It’s getting harder and harder for those who don’t own land to begin a farm operation,” he says. “It’s a higher barrier for those farmers.”

Plastina says work on the upcoming Farm Bill may impact cash rental rates.

“I assume, based on recent actions in Congress, there will be more resources to implement conservation practices, such as carbon sequestration,” he says. “The value that could create for farmers is important to both landowners and tenants.

“Any new ways to implement conservation practices that will come out of the farm bill could impact cash

rental rates, but it’s too early to tell,” he says. “We probably won’t see any real impact until maybe 2024.”

Plastina says survey information can serve as a reference point for negotiating an appropriate rental rate for next year. However, rents for individual farms should be based on productivity, ease of farming, fertility, drainage, local price patterns, longevity of the lease, conservation practices and services performed by the tenant.

For an overview of the 2022 survey, go to: https://bit.ly/3DHJjUu.

Contact Jeff Hutton at jhutton@iasoybeans.com

“All Iowa farmland is valuable and it’s been increasing.”

– Alejandro Plastina

WISHH works with key international stakeholders to demonstrate the value of

soy protein products for businesses and communities.

Homecoming Week

Rural Route 2

Editor’s Note by Bethany Baratta bbaratta@iasoybeans.com

It’s homecoming week in our Central Iowa town. There are dress-up days, a pep rally and even a parade all leading up to the football game on Friday night. Some homes and acreages are “decorated” with toilet paper all in the spirit of homecoming.

Growing up, homecoming week was always so much fun. We’d use whatever was in our closet or in our homes to dress up and fit the theme. Sometimes it was a bit of a stretch. In elementary school, we sat cross-legged in the carpeted gymnasium as high school football players and cheerleaders led us in a pep rally. We’d beg our parents for homecoming pins so we could wear that school pride.

In high school, our classes were assigned a hallway to decorate to fit a theme. I especially remember the “Welcome to the Jungle” theme. I think there was a fog machine at play in our hallway somewhere. The week culminated with playing

in the marching band, cheering on our football team, and a homecoming dance.

There’s an excitement this time of year in the town I’m from. It’s reflected at church, where farmers are beneficiaries of petitions. In conversations at the grocery store and gas stations, where farmers anxiously await conditions fit for harvest. At the local restaurant where a carryout order to take to the crew in the field turns into a longer stop because you’re talking about the weather, field conditions, equipment breakdowns, or harvest progress.

As I’ve grown up and moved away from home, homecoming takes on a bit different meaning. Though I’m still interested in the high school and colleges I attended, I think about the home farm the most when I think about homecoming.

From the large window off our dining room, I see soybean fields inching closer to harvest. Homes have blocked my full view of the

fields through the years, but I see the changing fields through the “windows” created between the homes.

There’s extra traffic on the highway between home and the office these days with combines and tractors pulling grain carts. Instantly I think of my family, traversing between farm fields, the co-op, and other grain storage locations. I saw a prayer for them—and you too— that the harvest be bountiful, but most importantly safe.

As our son participates in dressup days and watches the parade with his classmates, I hope he’ll someday tie his excitement of the week to his agricultural roots. Someday, maybe he’ll understand why Mom drives a bit slower past a soybean field being harvested, or why she lingers a bit in the grocery store talking about the weather. For her, it was also homecoming week.