THE LAND ~ March 2, 2018 ~ Northern Edition

“Since 1976, Where Farm and Family Meet” © 2018

Februar y 23, 2018 March 2, 2018

(800) 657-4665 www.TheLandOnline.com theland@TheLandOnline.com P.O. Box 3169, Mankato, MN 56002

Say goodbye to sun dogs

Think Spring

The Land previews the North American Farm and Power Show The farm economy: Cycle or slump?

Kent Thiesse talks crop insurance

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THE LAND — FEBRUARY 23/MARCH 2, 2018

Brighter days on horizon P.O. Box 3169 418 South Second St. Mankato, MN 56002 (800) 657-4665 Vol. XXXVII ❖ No. 4 32 pages, 1 section plus supplements

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Cover photo submitted by Kalene DeBoer

COLUMNS Opinion Farm and Food File In The Garden Calendar of Events The Back Porch Cooking With Kristin Mielke Market Weekly Farm Programs Marketing Auctions/Classifieds Advertiser Listing Back Roads

2, 4 4 5 5 6 7 18 21 16-17 24-31 31 32

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For the past six months, I have been pared for the scenario that a 2018 farm watching the financial statistics on famibill will not be completed this year. His ly farms become more critical. Minnesota reasoning: Congress is dealing with an Department of Agriculture and the infrastructure bill and it’s not likely they University of Minnesota Extension have can get both done. However, Harold been offering resources to help farmers Wolle, corn and soybean farmer near St. facing financial challenges and stress.

James, tweeted from Washington, D.C., on Feb. 7: “Talking 2018 farm bill in D.C. With every article I write on farm It will happen!” finances, I include a box on available LAND MINDS resources: MDA’s Farm Advocates proFarmers know a few things about optigram (www.mda.state.mn.us/about/commism.

When I talked with several proBy Marie Wood missionersoffice/farmadvocates); ducers at MN AG EXPO, I asked them MDA’s Farm and Rural Helpline (833) how they make it. One man smiled 600-2670; University of Minnesota and said he really didn’t know how he Extension’s Farm Information Line for did it. Then he told a favorite joke free financial counseling (800) 232-9077. from an ag publication. It went something like this: The reporter asked Elmer, an old farmer who had On Feb. 8, I came across this post from the National Farmers Union on my Twitter feed: “From been farming forever, what were his best years in farming. He answered, “1958 and next year.” His 2013-2016, net farm income fell 50 percent, forcing friend added the modern version of this joke would 42,000 family farmers and ranchers to go out of business. The 2018 farm bill must provide meaning- be “2012 and next year.” ful support to keep family farmers on the land.”

Better days are on the horizon. I attended David Kohl’s presentation at the Ag Symposium, Jan. 30, At the MN AG EXPO, held late January in and he is looking forward to the next decade. Come Mankato, Kevin Paap of Minnesota Farm Bureau 2021, he sees a period of regeneration in agriculand Gary Wertish of Minnesota Farmers Union, talked of the importance for farmers to walk togeth- ture. See the full article on page 9. He identifies trends, as well as management tips, that can make er with other farmers, environmentalists and organizations fighting hunger in advocating for the new a difference in your bottom line. farm bill. “We’ve learned in agriculture working This winter, I attended a fair rental agreement together works,” Paap said. workshop from the University of Minnesota Paap added that we must expand beyond the farm Extension. Extension educator David Bau said that family to the nutrition community through our nat- in the last 15 years, for every acre, the landlord receives two-thirds and the farmer receives oneural connection of food. Since agriculture is all about the environment and sustainability, Paap said third of the net income on average. we must work the best we can with environmental In addition, I am reading articles on farmland groups. The goal is to not fight over the dollars. sales fetching millions of dollars. Steffes Group sent “When we come in fractured, it’s very easy to say a press release on a major sale of more than 1,371 no,” he said. acres of farmland in Minnesota and Iowa that resulted in total sales of $10.2 million. The auction Both leaders would like to see the farm bill included 922 acres in Mower County and 353 acres signed, sealed and delivered this spring before the in Fillmore County. The tillable land averaged election season heats up. A video message from $8,800 per acre. “Our sellers were very pleased with Minnesota Sen. Amy Klobuchar said much the the outcome,” said Randy Kath of Steffes. same.

One bright spot, according to David Kohl, is the Then Blois Olson of Fluence Media took the stage at the annual lunch and told producers to be preSee LAND MINDS, pg. 4

OPINION

INSIDE THIS ISSUE

9 — Economist looks to next decade for regrowth in agriculture 12 — Welcome to the North American Farm and Power Show 21 — Deadline to purchase 2018 crop insurance is March 15

THERE’S EVEN MORE ONLINE... @ TheLandOnline.com • “Nuts and Bolts” — News and new products from the ag industry • “Calendar of Events” — Check out The Land’s complete events listing • “E-Edition” — Archives of past issues of The Land

S:9.792”

THE LAND — FEBRUARY 23/MARCH 2, 2018

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THE LAND — FEBRUARY 23/MARCH 2, 2018

Like 2014, new farm bill not likely to solve issues In this space on Feb. 2, touch the toughest issues 2014, I offered a blunt facing American farmers assessment of the justand ranchers: crop insurpassed (and still current) ance’s inability to either farm bill and its key hanslow or reverse falling farm dler, Frank Lucas, an income, the increasingly Oklahoma Republican who inarguable impact of cliwas chairman of the House mate change, and the clear Ag Committee. need for sustainable farm FARM & FOOD FILE policies that “make soil and In particular, I criticized water as important as corn

By Alan Guebert Lucas’s description of the and soybeans.” legislation that he and his Senate counterpart, A different bill, one that Michigan Democrat addressed any or all of Debbie Stabenow, had pieced together these big-and-sure-to-get-bigger probafter three years of yin, yang, and yak- lems, I added, would have been worthy king. The 2014 law, Lucas said, was of Lucas’s bombast. That bill, however, “historic,” “amazing,” “miraculous” and wasn’t passed by Congress in 2014. “a reform bill.”

Nor will it be in 2018. Both A more accurate adjective, I suggest- Republican ag committee chairmen, ed, would be “easy” because the ag Kansan Pat Roberts in the Senate and committees wrote a bill that didn’t Texan Mike Conaway in the House,

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have promised a 2018 farm bill that’s essentially a 2014 clone. As such, its key elements will be unbridled production and lower commodity prices, more farm and corporate consolidations, fewer and bigger farmers, and more trouble and woe for fast-fading rural communities.

Those aren’t predictions, they are results of the 2014 law. As such, if the 2018 farm bill is a photocopy of it, why would anyone expect any different outcomes short of a calamity like drought, flood or war that could lift grain and livestock prices?

That means market trends funded under the crop insurance-heavy, 2014 farm bill will get more fuel to grow in 2018. For example, since the 2014 farm bill became law: • U.S. net farm income has collapsed from $123 billion in 2013, the year Congress put the bill together, to a forecasted $60 billion in 2018.

• Farmers cut crop diversification.

Planted soybean acres climbed from 83.7 million in 2014 to 90.2 million in 2017 and planted wheat acres tumbled from nearly 57 million in 2014 to 46 million last year.

• And Congress greatly expanded a standing milk “assistance” program and created out-of-whole-cloth a “cotton seed” program that will cost an estimated $1.2 billion over the next decade.

That latter action, the need for Congress to spend more than a $1 billion to bail out two farm sectors suffering under the current law, is a reinforcing fact that the 2014 farm bill is failing in one of its core missions: the

elimination of costly, ad hoc disaster programs. There’s no other way to explain the additional (yet still needed) spending.

Of course, few in Congress recognize the $1 billion as a bailout. To do so would, first, suggest that those who voted for the 2014 law might have been wrong and, second, looking past the bailout makes it blindingly easier to vote for the similar 2018 farm bill.

In the short term, however, neither rich fix addresses the underlying problem that required the new spending: too much production.

Some dairy farmers told their U.S. senator, Democrat Tammy Baldwin, exactly that in a Feb. 19 meeting covered by La Crosse (Wis.) Tribune.

“While farmers said the tweaks (the changes to the farm bill’s dairy program) should help,” reported the Tribune, “they don’t view the program as an industry solution.” “‘It really doesn’t fix the situation,’ (a dairyman) said. ‘We’ve got too much milk.’”

Another concerned constituent, noted the Tribune, pushed for more exports, noting “‘We’re not going to eat our way out of this domestically.’”

A third chimed in with an even simpler way: “‘If there isn’t a market for food,’” he said, “‘we shouldn’t be producing it.’”

Now that’s how you do blunt.

The Farm and Food File is published weekly. Past columns, events and contact information are posted at www. farmandfoodfile.com. v

Non-farmers don’t understand LAND MINDS, from pg. 2 farm economy is in an asset bubble instead of the credit bubble of the 1980s. Within those land values, farmers find resiliency. For some, it means they can ride out the economic cycle.

For some, it means they can rent out their land. For others, it may mean they can sell the farm and retire comfortably.

When I talked to Ted Matthews, who counsels farmers for the Minnesota Department of Agriculture, he said that non-farmers don’t understand the plight of the farmer. “Farmers farm. …

It doesn’t matter what the land is worth unless they want to sell it. No farmer wants to sell their land.”

I have the easy job of sharing useful information with you. You have the hard job of combing through your financials, making adjustments, meeting with family members and bankers, reducing costs, watching trends and weighing difficult decisions.

Hang in there. The Land will hang in there too.

Marie Wood is the associate editor of The Land. She may be reached at mwood@thelandonline.com. v

THE LAND — FEBRUARY 23/MARCH 2, 2018

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Honoring long-time collaborator and partner Larry Hansen It is with a heavy heart that I tell you perfectly to a bucket garden leveled to a my partner of over 30 years has died. quarter-inch precision.

Larry was the photographer who took the Larry was a Vietnam veteran and died majority of pictures used in this column. from esophageal cancer that was diagWe were a good team and it was just five nosed six months ago. His final resting years ago that I began writing this column place will be at the State Veterans and using his photos to illustrate the subCemetery at Camp Ripley in Little Falls, ject matter.

Minn.

Larry was instrumental in developing As Larry approached the end of his life, IN THE GARDEN Valley View Gardens in Eagle Bend, he set an example for us all, leaving this Minn., where we live. He and I planted

By Sharon Quale earth with dignity and grace. He will be hundreds of trees and shrubs and worked remembered and missed always. together on making stone paths, putting up border Sharon Quale is a master gardener from central fencing and installing fountains.

Minnesota. She may be reached at (218) 738-6060 or All of Larry’s projects were done with precision squale101@yahoo.com. v and care from construction of a bordered flower garden where the mitered ends of the wooden edges fit

Calendar of Events Visit www.TheLandOnline.com to view our complete calendar & enter your own events, or send an e-mail with your event’s details to editor@thelandonline.com.

March 5 — Nitrogen Smart Workshop — Foley, Minn. — Training program for producers that presents fundamentals for maximizing economic return on nitrogen investments while minimizing nitrogen losses — Visit www.extension.umn.edu/ agriculture/crops/events/nitrogen-smart/ or contact bcarlson@umn.edu or (507) 389-6745 March 8 — Farmers Fair — Roscoe, Minn. — Topics and vendor booths will feature cover crops in a variety of crop rotations, cover crop seeding methods, integrating cover crops and manure, and alternatives for water quality — Contact Stearns County SWCD at lynn@srwdmn.org or (320) 3522231 March 9-10 — Minnesota All Breeds Convention — Willmar, Minn. — An opportunity for the seven dairy breed associations of Minnesota to come together — Contact Mary Swart at Minnesota PDCA and Minnesota Ayshire Breeders Association at (320) 354-4396 March 10 — Backyard and Small flock Poultry Workshop — St. Cloud, Minn. — Designed for beginning chicken keepers with topics on breeds, regulations, husbandry, nutrition, biosecurity — Contact Emily Wilmes at Stearns County Extension at krek0033@umn.edu or (320) 255-6169

March 13-15 — Midwest Poultry Federation Convention — Minneapolis, Minn. — Convention features trade show, exhibits and education on a variety of topics for turkey, egg layer, broiler and organic producers — Visit midwestpoultry. com

Lawrence (Larry) Hansen Nov. 8, 1943-Feb. 7, 2018

March 15-17 — North American Farm & Power Show — Owatonna, Minn. — Trade show of the latest farm technology and equipment, seminars, grand prize drawings, exhibits — Contact (800) 347-5225 or visit tradexpos.com/ March 23 — Small Grain Winter Workshop — Benson, Minn. — This program is designed to help farmers determine if small grains can work on their farm, in their rotation, and if it can be sustainable over time; tools and information on production agronomics, variety selection, disease identification, fungicide use, fertility, quality, equipment, and economics — Contact Scott Lee at (320) 7606129 March 27 — Nitrogen Smart Workshop — Perham, Minn. — Training program for producers that presents fundamentals for maximizing economic return on nitrogen investments while minimizing nitrogen losses — Visit www.extension.umn.edu/ agriculture/crops/events/nitrogen-smart/ or contact bcarlson@umn.edu or (507) 389-6745 March 28 — Nitrogen Smart Workshop — Ada, Minn. — Training program for producers that presents fundamentals for maximizing economic return on nitrogen investments while minimizing nitrogen losses — Visit www.extension.umn.edu/ agriculture/crops/events/nitrogen-smart/ or contact bcarlson@umn.edu or (507) 389-6745

255 16th Street South St. James, MN 56081

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THE LAND — FEBRUARY 23/MARCH 2, 2018

Rushed? Take time to sort out life’s ‘emergencies’ The language was colorful in the aircauses those near me to back away. port waiting area at Gate E13. The Losing our way in life is an emergency. woman with gray boots past her kneeLosing our relationship with our family caps called the place God-forsaken. A potbecause we are too stressed, distracted bellied, bald man grumbled expletives as and busy is disastrous. Losing the TV he engaged in a stare down with the remote is not. Searching through couch plasma above the agent’s head. It was as cushions may test tired nerves, but it’s if he believed his glare and growls could no emergency. reverse the screen’s flight delay message.

Passing opportunities to speak life into THE BACK PORCH A delay here means a missed flight on the next generation is more dangerous the other end. A missed flight on the

By Lenae Bulthuis than it appears. Passing by those who other end means an even later arrival at need food, shelter and a friend is tragic. the final destination. But what I noticed in the Getting passed in traffic is not. And though you may friendly travel agents and was seeking to remind be the better driver and you’d like to give the one my own soul is truth. This is not an emergency. who cut you off a piece of your mind, save your Engine failure is an emergency. A plane crash is words. He can’t hear you. But your passengers can, an emergency. Flight delays are not. They’re inconand they are not your problem. Nor your emergency. venient and frustrating. But no emergency.

Needing air to breathe is indispensable. Having And though I discerned this one, I’ve missed most. access to clean drinking water is essential. Coffee is More often then I care to admit, I’ve set off false not. Nor is Diet Coke or chocolate. Or maybe these alarms in my spirit. And when I get hooked on ficnon-emergency reminders are just for me. tion instead of fact, it wreaks havoc on my soul and

Author and speaker Ann Voskamp writes, “Go slow. Life isn’t an emergency. It’s a gift. Only the slow see their lives. Which makes it seem longer and richer.”

These are convicting words to those of us who walk fast, talk fast and want everything done yesterday. But they also apply to those who are so chilled they could be mistaken for comatose.

Because hurry has more to do with the pace and anxiety of the heart than the speed and length of our stride.

In his book, “The Life You’ve Always Wanted,” John Ortberg writes, “Hurry is the great enemy of spiritual life in our day. Hurry can destroy our souls. Hurry can keep us from living well.”

Hurried people think everything is an emergency.

Hurried people have a turbulent heart condition that can highjack their peace and shatter their soul.

But if we can slow down and rightly discern between true emergencies and false alarms, we’ll see and savor the gifts of grace that surround us.

Even at Gate E13.

Lenae Bulthuis muses about faith, family, and farming from her back porch on her Minnesota grain and livestock farm. She can be reached at lenaesbulthuis@gmail.com or @LenaeBulthuis. v

Farm advocates program expanded ST. PAUL, Minn. — The Minnesota Department of Agriculture has added another farm advocate to its ranks. Steve Zenk joined the team earlier this fall, bringing the total number of statewide farm advocates to 10.

Farm advocates provide free, one-on-one assistance to Minnesota farmers facing crises caused by natural disasters or financial problems. Steve Zenk, owner and operator of Zenk’s Prairie Vine Farm, will serve the Renville County area.

The Farm Advocates Program has been supported by the MDA since 1984. The advocates receive continuing education and training in complex and everchanging issues relating to agriculture to help farmers make decisions.

“When a farm family is facing a crisis, they might not know where to turn,” said Zenk. “The Advocates are here to help farmers and their families find their way through the unique challenges they face.”

For more information about the Farm Advocates, including a list of contact information, visit www. mda.state.mn.us/about/commissionersoffice/ farmadvocates.

This article was submitted by the Minnesota Department of Agriculture. v

THE LAND — FEBRUARY 23/MARCH 2, 2018

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Top of the recipes with a dash of luck for St. Patrick’s Day shell with about 1 tablespoon of The saying goes: “There the pesto. Sprinkle the filled potato are only two kinds of people shells with the cheese. Broil until in the world — the Irish the pesto is bubbly and the cheese and those that wish they is melted and golden brown, 2 to 3 were.” On March 17 we’re minutes. Serve the potato skins all Irish for the day. In hot. honor of St. Patrick’s Day here are some recipes that n will hopefully bring the luck This deli favorite is a COOKING of the Irish your way.

WITH KRISTIN great way to get a taste of n the classic Irish-American

By Kristin Kveno corned beef in a crispy Start your St. Patrick’s Panini. If you’re a ’kraut fan Day feast off right with this like me, then feel free to add as much tasty appetizer that pairs potatoes, kraut as your stomach can handle. I pesto and broccoli together in a crispy made these for the family and to my appetizer that has just the right delight, the groans were minimal and amount of green to be both tasty and the cheers were abundant! healthy.

Reuben Panini Potato Skins with Broccoli Pesto https://everydaygoodthinking.com/2015/03/14/ www.foodandwine.com/recipes/potato-skinshow-to-make-reuben-sandwiches-two-ways/ with-broccoli-pesto 8 (1/2-inch thick) slices rye bread 2 medium russet potatoes 1/4 cup butter, softened 2 cups broccoli florets 1/4 cup Thousand Island dressing 1 garlic clove 1 pound corned beef, divided into four servings 1/4 cup packed fresh flat-leaf parsley leaves 2 cups sauerkraut 1/4 cup packed fresh basil leaves 4 slices Swiss cheese 1/2 tsp. finely grated lemon zest 1 tbsp. fresh lemon juice Preheat Panini press. Spread butter on one 1 tbsp. extra-virgin olive oil, plus more for side of each slice of bread. Spread dressing on brushing other side of bread. Place corned beef, 1/2 cup sauerkraut, and 1 slice of Swiss cheese on each Salt slice of bread. Cover with remaining 4 slices of Freshly ground pepper bread, butter side up. Place 2 sandwiches on 1/4 cup plus 2 tbsp. finely grated ParmigianoPanini press. Close lid. Cook 3 to 5 minutes or Reggiano cheese until desired brownness. Repeat with remaining Scrub the potatoes and prick all over with a sandwiches. fork. Microwave at high heat for 8 minutes, or n until tender throughout. Alternatively, bake the potatoes in a 350 F oven for about 1 hour.

Guinness stout is one of the most Transfer the potatoes to a work surface and let famous beer brands in the world and cool slightly. Meanwhile, in a large pot of boiling happens to hail from the great country salted water, cook the broccoli until tender and of Ireland. This stew mixes Guinness bright green, about 4 minutes. Drain the brocco- with beef and veggies, creating a delili, reserving some of the cooking liquid. In a food cious masterpiece. processer, process the garlic until minced. Add Beef and Guinness Stew the broccoli and pulse until chopped. Add the www.mrfood.com/Casseroles/Beef-andparsley, basil, lemon zest, lemon juice and 1 Guinness-Stew-From-Mr-Food tbsp. olive oil and puree until smooth, about 2 minutes; scrape down the side of the processor 3 slices raw bacon, chopped 1 tbsp. vegetable oil bowl as needed. If the pesto seems dry, add some of the cooking liquid. Season with salt and 2 pounds beef stew meat pepper and transfer to a bowl. Preheat the broil- 1-1/2 cups (12 ounces) Guinness beer er. Halve the cooled potatoes lengthwise. Using 3 cups beef stock a small spoon or scoop, carefully remove some 2 cloves garlic, minced of the potato flesh from each potato half, leaving 1/2 tsp. salt a shell about 1/4 inch thick. Cut each potato half 1/2 tsp. black pepper crosswise into 3 equal pieces. Put the potato 12 ounces baby carrots pieces skin side up on a baking sheet and brush 4 celery stalks, sliced into 1/2-inch chunks the skins lightly with oil. Broil until crisp and golden in spots, about 2 minutes. Turn over the 1 yellow onion, peeled and cut into half-moons 1 to 2 tbsp. all-purpose flour potato shells on the baking sheet and fill each

1/3 cup water In a heavy soup pot or Dutch oven over high heat, cook bacon until crisp. Stir in oil and meat, and continue cooking 8 to 10 minutes, or until meat is browned. Stir in beer, beef stock, garlic, salt and pepper; reduce heat to low and simmer, covered, 30 minutes. Add carrots, celery and onion. Stir well and cook 1 hour, or until meat is tender. Mix flour with water, then stir into stew. Cook 1 to 2 minutes or until sauce is thickened. n Leprechauns have been part of Irish folklore for centuries. Why not try your luck in making this scrumptious Lucky Leprechaun Munch?

Lucky Leprechaun Munch www.julieseatsandtreats.com/lucky-leprechaunmunch/ 1 box (11.5 oz.) Lucky Charms cereal 6 cups Rice Chex 2 bags (12 oz. each) green candy melts 1/4 cup pastel sprinkles Pour the Lucky Charms out and take out all the marshmallows and set them aside. In a large mixing bowl, combine Rice Chex and 2 cups of the Lucky Charms cereal. Melt candy

melts according to package directions. Pour over cereal mixture. Spread mixture onto wax paper. Sprinkle reserved marshmallows over cereal mixture, slightly pressing into mixture to help them stick. Sprinkle the sprinkles over the mixture. Let sit until candy melts are set and dry. Break apart and store in airtight container. n No matter how you celebrate St. Patrick’s Day may your stomach and heart be full and may the luck of the Irish be with you today and always.

If your community group or church organization has printed a cookbook and would like to have it reviewed in the “Cooking With Kristin,” send us a copy to “Cooking With Kristin,” The Land, P.O. Box 3169, Mankato, MN 56002.

Please specify if you wish to have the cookbook returned, and include information on how readers may obtain a copy of the cookbook.

Submission does not guarantee a review. v

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THE LAND — FEBRUARY 23/MARCH 2, 2018

Teachers take ag experience from field to classroom

By KRISTIN KVENO The Land Correspondent Increasing agricultural literacy in schools across the state is the goal of Minnesota Agriculture in the Classroom. This program was developed by the Minnesota Department of Agriculture and the state’s agricultural and educational communities as an opportunity for students to better understand and appreciate agriculture in our everyday lives through core concepts.

Keri Sidle, education specialist with Minnesota Agriculture in the Classroom explains this idea includes the opportunity for teachers to travel to ag-based businesses and farms to see these concepts first hand.

This program initially began over four years ago when the MDA hosted the National Ag in the Classroom conference. MAITC education specialist Sue Knott recalls that there were 11 different traveling tours in the conference and they were a huge success.

“We knew that the Summer Teacher Tours had the potential to positively impact teachers and our MAITC program,” Knott said.

The program was so successful the teacher tours have continued to be offered every summer. The tour locations have been chosen many times by Sidle simply sending e-mails out to agri-business and farmers in the area they would like to cover. Those in the agricultural community have shown their support of this effort by opening their businesses and farm sites to these educators.

Impact on educators So far, over 270 teachers have participated in the tours. Teachers from all different schools in Minnesota have taken part in the tours. It’s a mix of rural and urban Sidle said. Though the tours aren’t just for teachers, according to the MAITC website, the tours are open to “educators at all K-12 levels, administrators, curriculum directors, and career and guidance counselors.”

From kindergarten to high school teachers, there are many that want this hands-on experience to see agriculture close up. There’s definitely an advantage in having “the dialogue with farmers,” Sidle said.

For Toni Maki, a first grade teacher at North Shore Community School in Duluth, this tour was a chance to get in those hours needed for licensure renewal.

Maki’s school had just built a greenhouse, so this tour seemed to be perfect fit. An interesting tour stop for Maki involved bees.

“It was fascinating learning about bees, and the different breeds and the art of beekeeping,” Maki said.

Maki has attended the Summer Teacher Tour for the last two years and she has always come away with something to bring back and share with the rest of our school.

“It is so fun to learn about different parts of our state and learning more about the garden-to-table initiative,” Maki said.

It was her husband Pat, who told Krystal O’Connor about Ag in the Classroom. Pat is currently in the Minnesota Agriculture and Rural Leadership program and learned about the tour from a presentation in his class. For O’Connor, a fifth grade teacher at Halverson Elementary in Albert Lea, the tour fit in perfectly with a family vacation.

“I was ecstatic when we could go to the tour near Bemidji. Pat and I took one day away from our family resort to experience agriculture and education — two of our favorite things,” O’Connor said.

The tour in northern Minnesota offered O’Connor the opportunity see agriculture in a different part of the state than where she lives.

“We vacation a few miles away from the berry farm we toured. I’ve been there several times. I learned more than expected on that tour, with a lot about the wonderful family behind the berries,” O’Connor said.

While O’Connor knows a lot about dairy cattle, she was able to tour a beef cattle ranch.

“It was great to spend part of the tour exploring a beef cattle ranch. I assumed beef cattle were selfsufficient; but the tour definitely taught me that it takes a village (of people and grazing ground) to raise a healthy herd of beef cattle,” she said.

“The tour is a very cost efficient and fun way to get CEUs (continuing education units) for any educator who wants to learn new things. I’m hoping I can talk several of my friends and colleagues into joining me on this year’s tour,” O’Connor added.

Farm to school The ultimate goal from the tours is for the teachers to utilize the newly gained information within their classrooms. Teachers also have the opportunity to receive continuing education credits and for an additional fee they can sign up for graduate level credits through Hamline University.

This summer, there will be single day tours in Carver County on June 20, in the Bemidji area on July 12, and a two-day tour in Martin County on July 26-27. The cost is $25 to $75 per person, depending on the tour. The maximum group sizes are 40 teachers. This gives the teachers the opportunity to ask questions and allows the farmers and agri-business people the ability to share their experience and knowledge with a smaller group.

A tour last year included a chance to drive a tractor around the Farmamerica parking lot in Waseca. This summer, Farmamerica will host a teacher day camp which will be held at the end of July. This camp focuses on lessons and activities that teachers can use in their classrooms Sidle said.

Sidle is enthusiastic when she describes all of the possibilities. Incorporating agriculture into concepts that are already taught, for example, in third grade.

Instead of solely learning about the genetics of people, why not consider examining the genetics of cattle and field crops? Minnesota Agriculture in the Classroom has over 400 lessons for teachers to use. While a 400-lesson offering is impressive, the ability to give these teachers the opportunity to get out in the field and see a dairy operation up close or drive a tractor gives all those classroom lessons a real life experience and measurable meaning.

Those that are interested in the tour can sign up online beginning March 1 at https://minnesota. agclassroom.org/programs/tour.cfm. v

THE LAND — FEBRUARY 23/MARCH 2, 2018

www.thelandonline.com — “Where Farm and Family Meet”

PAGE 9

David Kohl predicts spring thaw in farm economy

By MARIE WOOD The Land Associate Editor NORTH MANKATO, Minn. — “The Grinder” is what David Kohl is calling the economic cycle that farmers grinded through from 2013 to 2017.

David Kohl delivered the keynote to about 500 farmers and students at the 10th Ag Symposium at South Central College, North Mankato, on David Kohl Jan. 30. Kohl, professor emeritus in agricultural and applied economics at Virgina Tech, is well known for identifying trends and forces that impact agriculture. He travels across the nation and globe speaking and teaching.

He combs through FINBIN — farm management data from 50,000 farms in multiple states. “You will see the future in those databases,” he said.

He has found that trends in that data are two years ahead of U.S. Department of Agriculture data. He noticed that in 2011-12, the bottom third of producers in the database were making money.

“When the bottom third in any industry is making money, you’re going to have tough times usually about two to three years down the line because it brings the inefficient in. It was too easy to make money,” Kohl said.

He was right. Today, farmers are five years into “The Grinder.” He broke down our economic cycle into seasons. The summer was the super cycle of 2006-12. Farmers made more money in these six years than in the previous 40 years, he said. Many factors came together: ethanol boom, demand from emerging nations, a weak dollar and technology.

Next came the fall or “The Grinder” years of 201317. This period is identified by commodity surplus, suppressed margins, farmers burning through capital, refinancing for liquidity and land retaining its value.

In the 1980s, Kohl explained that young Baby Boomers were taking over the farm from their parents and grandparents of the Great Depression. This created a credit bubble. Now we are in an asset bubble, which means today’s farmers have land equity, which brings resiliency.

The years of 2018-21 is the winter of this economic cycle defined by a widening gap of economic performance. The top 40 percent of producers are selectively growing their business.

Vendors are providing operating credit, but this may tighten.

“Be careful. Always remember who you’re operating lender is because they can put you out of business very, very quickly,” Kohl said.

Spring and regeneration is coming in 2021-25, Kohl predicted. This period will require a balance between equity and tenure versus youth and growth.

“When you combine experience, tenure and equity with youth, innovation and management, you take the business to the next level,” Kohl said.

The market will be consumer, data and people driven and it will not be one single enterprise fits all.

“That makes agriculture very, very exciting,” Kohl

said.

The consumer marketplace is splintered. Kohl pointed to the beer market filled with microbrews as a harbinger. Millennial consumers want different and buy experience, he noted. They look for natural See KOHL, pg. 10

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THE LAND — FEBRUARY 23/MARCH 2, 2018

Asset light, efficiency are guiding tenets in management Since 2013, the top producers that have KOHL, from pg. 9 been making adjustments are doing OK, but and organic. The market will differentiate the other group is dropping off. between genetically modified organisms verThe top 40 percent of producers are 5 persus non-GMO. Knowing the origin of food is cent better than the bottom 30 percent of promore important than local, he added. ducers. In 2018, he challenged the audience to Bob McConnell, a farmer from Armstrong, look for three ways to be 5 percent better in Iowa, attended the symposium with his two production, marketing, finance or putting your sons. McConnell was encouraged that Kohl is system together to drive toward efficiency. seeing improvements in 2021 even though The top producers have a marketing advanwaiting another three years is less than ideal. tage along with lower rent and input costs of “There’s light at the end of the tunnel,” said $20-$50 per acre. He cautioned not to cut crop his son Caleb McConnell. insurance to lower input cost.

Top ag indicators Photo courtesy of South Central College, North Mankato Campus Foundation Family living expenses also play a key role.

Exports are the number one issue on Kohl’s David Kohl led a presentation for high school students at the Ag SymHe puts family expenses into two categories: radar these days. The next four months will be posium on Jan. 30 at South Central College, North Mankato. high maintenance of $90,000-$125,000 and very critical for the North American Free low maintenance of $40,000-$70,000 per year.

Trade Agreement. Twenty percent of net farm France and Germany because they want to outlaw Another issue is the farm may be supporting too income comes from exports and Canada is our num- gas-powered engines and replace them with electric many family members. ber one trading partner, Mexico number three. Can- vehicles by 2040. China is following suit.

His five characteristics of a sound financial system ada represents $21 billion; China, $20 billion; and “Your commodity prices will oftentimes follow that are: know cost of production; make accrual adjustMexico, $18 billion in ag exports. oil sector,” Kohl said. ments; do trend analysis; benchmark against FIN“If we tear it up, we could be in the 1980s very, very Transitions in farms, along with the retirement of BIN data; and keep records in a safe, secure place. quickly,” Kohl said. ag industry professionals, is accelerating rapidly, One bright spot is boomerang farmers who are When the United States backed out of the Trans- which means opportunity — even more opportunity coming back to the farm, some from the ag industry, Pacific Partnership in spring 2017, China came in when you consider that 21 percent of American farmand applying systems to the family operation. and filled the void and Canada and Mexico joined. ers and ranchers do not have a next generation to In talking with producers across the country, Kohl Three out of every seven customers in the world take over, said Kohl. gathers wisdom. One farmer told him he calculates come out of Asia.

Management profitability by field, dropped 3,000 acres, and he put “Right now they are negotiating agreements withAsset light and a drive toward efficiency is guiding $300,000 on his bottom line. out us at the table,” he said. business today, Kohl said.

“I am seeing more and more producers who are In China, President Xi Jinping has a timeline of For instance, one major trend on the farm are saying ‘Do I really need that leased land?’” Kohl said.

2030-50 to be the world’s economic and military lead- weather applications, providing weather forecasts The same producer also dropped his family living ing power. The country’s biggest issue is natural right down to each field. The applications offer added expenses to $68,000 from $128,000. resources — water quality, metal toxicity in the soil efficiency when planting, fertilizing and spraying. and air quality.

Another farmer maintained 40 percent working Farm management records show 40 percent of “They have natural resource issues. That is our farmers are eking out a profit. “If they’re showing a capital which offers flexibility, opportunity to take advantage of discounts and the ability to self-finance. strategic advantage here in the United States of loss, it’s a small loss.”

Another farmer monitors his financials every two America,” Kohl said.

The producers in the middle are in denial, waiting weeks with his chief financial officer, his wife.

Kohl commended President Donald Trump for for that bad weather event, Kohl said.

“Managing those financials is an intense business,” appointing former Iowa Gov. Terry Branstad as U.S. Meanwhile, the bottom 30 percent are managing he said.

Ambassador to China. Branstad developed a friendtheir business by their income tax form. Then they ship with Xi during his visits to Iowa in the 1980s.

Besides speaking on farm management and the might turn the financial management to someone “When you market with Asia, it’s about trust,” Kohl else. They also tend to be paying more for marginal economy, Kohl is part owner in Homestead Creamery, a dairy business in the Blue Ridge Mountains. said. resources.

With four small dairies of 100-150 cows, the creamWhile export markets create volatility in agricul“Very few businesses ever fail by paying income ery markets milk in glass bottles, along with preture, volatility can also be opportunity. taxes,” he said. mium ice cream, egg nog and flavored milk. The “Volatility can be your enemy and it can be your products are distributed to retail outlets in 12 states friend. It’s all up to you and management,” Kohl said. and by home delivery to customers in Virginia.

Resources He is closely watching the growth of the U.S. econA woman asked a question from her 8-year-old son: University of Minnesota Extension Agricultural Business Manomy and the stock markets that have been “hotter When will the milk price go up? Kohl said dairy maragement: www.extension.umn.edu/agriculture/business/ than a pepper sprout.” The Federal Reserve wants to gins have baffled him. He said we are losing four University of Minnesota Center for Farm Financial Managego back to the normal interest rate of 6.5 prime, but dairies a day and wished he had more positive news ment: www.cffm.umn.edu for FINPACK, FINBIN and more that could pose a shock so the key will be how fast for her son. The solution for his creamery is marketthe increase will take place, Kohl noted.

Center for Farm Financial Management offers a free, selfing flavored milk. guided online course called Interpreting Financial Statements Oil prices are low because the United States has “The future marketplace is going to be very entreand Measures: https://www.cffm.umn.edu/products/ gained energy independence through ethanol, wind, preneurial and very business and business-manageIFSaM.aspx solar and fracking, he said. Kohl also is watching ment wise,” Kohl said. v

THE LAND — FEBRUARY 23/MARCH 2, 2018

Steele County Fairgrounds FOUR SEASONS CENTRE 1525 South Elm Avenue Owatonna, Minnesota

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PAGE 11

Free Parking Free Admission

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THE LAND — FEBRUARY 23/MARCH 2, 2018

Owatonna hosts North American Farm & Power Show North American Farm and Power Show schedule

March 15-16, 9 a.m.-5 p.m.

March 17, 9 a.m.-4 p.m.

Steele County Fairgrounds Owatonna, Minn.

Free admission, free parking, free ag seminars

www.tradexpos.com The North American Farm and Power Show makes its annual return to Owatonna, Minn., March 15, 16, and 17. March is a great time to catch up on agriculture trends for 2018. Stroll through the large indoor exhibit space in Four Seasons Centre at Steele County Fairgrounds.

You can also view the large equipment outside.

Looking for new farm and ranch technology, feed and seed data, building technology, field sprayers, tiling? You will find it all at the NAFP Show.

The Steele County Fairgrounds’ Four Seasons Centre is located at 1525 South Elm Avenue, Owatonna.

Grand prize drawing Register to win a Husqvarna 455 Rancher 18 inch chain saw prize package, a $600 value.

The package includes gloves, cap, carrying case and more. The chain saw is provided by Miner’s Outdoor & Rec in Blooming Prairie.

Register at the information desk in the lobby of the Four Seasons Centre. You must be 18 years of age to enter. Drawing will take place at 3:30 p.m. Saturday, March 17.

Thursday, March 15 Educational Seminars will be held in the Second Level Meeting Room.

9 a.m. — Exhibit floor opens 10 a.m.-noon — Farm and Business Succession Planning with Callyn Bedker, Pluto Boes Legal PLLC, sponsored by The Linder Farm Network 1-4 p.m. — Managing Nitrogen in Minnesota Crops is sponsored by the University of Minnesota Extension 1 p.m. — Impacts of a Cover Crop on Nitrogen Availability with Randy Pepin, University of Minnesota Extension 2 p.m. — Management Tools that Maximize Profit and Minimize Nitrogen Loss with Jeff Vetsch, University of Minnesota 3 p.m. — Variable Rate Nitrogen: Based on What? With Brad Carlson, University of Minnesota Extension 5 p.m. — Exhibit floor closes Friday, March 16 Educational Seminars will be held in Second Level Meeting Room.

9 a.m. — Exhibit Floor opens 10 a.m.-11:45 a.m. — Key Fundamental and Technical Factors Influencing the Market in 2018 with Theresa Erickson of PMA Merchandisers Noon-5 p.m. — Current Issues in Manure Management is sponsored by University of Minnesota Extension and Minnesota Association of County Feedlot Officers. This program meets the education requirements for the Minnesota Department of Agriculture’s Commercial Animal Waste Technician Lincensing Program. Registration begins at noon.

1:05 p.m. – CAWT License Program Update from the Minnesota Department of Agriculture 1:25 p.m. — Runoff Risk Advisory Forecast from Heather Johnson, MDA 2:05 p.m. — Tile Drainage and Manure Application from Tim Raddatz, Discovery Farms 3 p.m. — Record Keeping and Review from Steve Schmidt, Minnesota Pollution Control Agency 3:40 p.m. — Manure Math and What’s New at the U from Melissa Wilson, University of Minnesota Extension specialist 5 p.m. — Exhibit floor closes Saturday, March 17 Educational Seminars are held in the Second Level Meeting Room 9 a.m. — Exhibit floor opens 8:30-10:30 a.m. — Southern Minnesota Irrigators Association Annual Meeting 10:30 a.m.-noon — Minnesota Cover Crops with T J Cartes, Saddle Butte Ag and sponsored by Saddle Butte Ag 3:30 p.m. — Grand Prize Drawing for the Husqvarna 455 Rancher Chain Saw Bundle. Need not be present to win.

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Agricultural Education University of Minnesota Extension and the Minnesota Association of County Feedlot Officers are offering educational seminars at the North American Farm and Power Show in Owatonna during the afternoons of Thursday March 15 and Friday March 16. Informational sessions with University of Minnesota Extension and the Minnesota Association of County Feedlot Officers are located upstairs, just above the show.

Thursday’s theme is Managing Nitrogen in Minnesota Crop Systems and will feature new research which addresses how to use nitrogen effectively and profitably, presented by University of Minnesota Extension. Randy Pepin, University of Minnesota Extension educator, will discuss the best practices for managing nitrogen availability with cover crops, specifically in a system using manure. Jeff Vetsch, University of Minnesota soil scientist, will talk about how to manage nitrogen to maximize profit and minimize nitrogen loss. Brad Carlson, University of Minnesota Extension crops educator, will discuss how nitrogen behaves in the environment in order to examine the philosophies employed to make variable rate nitrogen recommendations. The session will run from 1 to 4 p.m. and is free to attend.

The Minnesota Association of County Feedlot Officers will be offering a Current Issues in Manure Management training session for commercial manure applicators and livestock producers who want to learn more about the developments in manure application. The workshop costs $10 per person, will run from 1-4:30 p.m. Friday, March 16. Attendance at the entire program meets the education requirements for the Minnesota Department of Agriculture’s Commercial Waste Technician Licensing Program.

Please contact Claire LaCanne, Extension educator for Rice and Steele counties at (507) 444-7691 with any questions.

This article was submitted by the University of Minnesota Extension. v

THE LAND — FEBRUARY 23/MARCH 2, 2018

www.thelandonline.com — “Where Farm and Family Meet”

Visit us at the North Ame rican Farm & Po wer Show Booth #60 7!

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THE LAND — FEBRUARY 23/MARCH 2, 2018

North American Farm & Power Show list of exhibitors

1st Choice Security, Inc................................. 632 2-Way Radio of Minnesota, Inc...................... 638 4L Mfg. & Machine, Inc................................. 528 A Acadian Plant Health..................................... 807 Advanced Biological Marketing..................... 822 Ag Focus...................................................... 603 Ag Solutions................................................. 718 Agnition........................................................ 734 Agrigold Hybrids........................................... 631 Agriguardian................................................. 828 Agri-Steel, Inc............................................. 253C Agrology Crop & Soil..................................... 518 All American Pressure Washers..................... 239 Ameribuilt Buildings, Inc............................... 251 American Made Sales, Inc............................. 247 Andersons Pure Grade.................................. 420 Arnold’s Inc................................................... 202 Artex Manufacturing Ashland Ag Systems..................................... 724 B Becks Hybrids............................................... 733 BigIron Auction Company.............................. 817 Blue Horizon Energy...................................... 409 Boss Supply Inc............................................ 206 Brian Welke Agency...................................... 115 Bridgeview Mfg............................................. 725 Broskoff Structure, Inc.................................. 302 Buckey’s Sales & Service.............................. 810 Byron Seeds................................................. 610

C C&C Steel Roofing........................................ 705 C&E Tanks and Silos..................................... 731 Center for Agricultural & Food Science.......... 635 Central Farm Service.................................... 615 Changing Times............................................ 428 CHS, Inc........................................................ 814 Clean Cutter Flail & Tiller Blade Co................ 608 Compeer Financial........................................ 609 Conklin Products........................................... 812 Copperhead Agricultural Products................. 314 Courtland Waste Handling, Inc....................... 607 Crystal Valley Co-op...................................... 823 Culpitt Roofing, Inc........................................ 510 D Dairyland Seed Co. Inc.................................. 732 Dan’s Custom Welding Tables....................... 534 Dean’s Ag..................................................... 506 Delux Grain Dryers........................................ 612 Derson/Clean Burn........................................ 139 DPA Auctions................................................ 735 E Ellingson Drainage...................................... 251C Express Pressure Washers, Inc...................... 433 F Fastline....................................................... 253A Fine Twine Co............................................... 253 Flex-Till........................................................ 236 FluidAll......................................................... 425 For-Most Inc................................................. 611

Freeborn’s Pride Builders, Inc........................ 628 G Gard Specialists............................................ 101 Gold Country Seed........................................ 825 GPS Services/Farm-Tech, Inc........................ 402 Green Energy Products................................. 520 Greener World Solutions................................ 508 Greenleaf Inc. /KSI Group.............................. 601 H HH Fabrication & Repair................................ 418 Hazelwood Enterprises............................... 837A Heatmaster SS/SteelTech, Inc..................... 261A Hewitt Drainage Equipment, Inc.................... 712 Hodgman Drainage Co., Inc........................... 133 Holmes Ag Supply......................................... 404 Hoover Tarp Sales......................................... 637 Hud-Son Forest Equipment........................... 516 I IBA Dairy Supplies........................................ 726 International Steel Erectors, Inc..................... 737 J Janesville Tire Service Inc............................. 802 Justice Brother Additives/Lubricants............. 423 K K&S Millwrights, Inc...................................... 113 Kathy’s Collectables/House of Signs.............. 401 KBS.............................................................. 815 Kibble Equipment.......................................... 102 Kruge Air, Inc................................................. 324 L L&E Farm Drainage....................................... 414 Lake Place/Landbin Realty..................................

Land O’Lakes Co-op Trucks.......................... 127 The Land...................................................... 502 The Last Glue............................................... 538 Lee J. Sackett, Inc......................................... 806 Lodermeier’s, Inc.......................................... 624 Loken Excavating & Drainage....................... 800 M Manke’s Outdoor Equipment & Appliances.... 832 Martin Till..................................................... 408 Mathews Company....................................... 630 Mathiowetz Construction.............................. 703 McPherson Crop Management...................... 602 Mealman Farm Toys........................... East Lobby Meg-Mo Systems......................................... 717 Midwest Autosteer........................................ 335 Midwest Power Up of MN.............................. 633 Mike’s Repair................................................ 123 Miner’s Outdoor.......................................... 601A Minnesota Farm Guide.................................. 259 Minnesota Farmers Union............................. 722 Minnesota FFA Foundation................ Main Lobby MK Service & Repair..................................... 625 Minnesota Farm Bureau Federation............... 407 Morton Buildings, Inc.................................... 512 N Nordaas American Homes............................. 406 Northland Buildings, Inc................................ 416 Northland Farm Systems, Inc........................ 122 NuTech Seed................................................ 620 O Osakis Silo Repair......................................... 809

P Pioneer Seed................................................ 606 Pondlift Aeration/Aerobic Treatment............ 502A Powerlift Doors by French Repair Mfg........... 830 Prairie Brand Seed........................................ 237 Precision Farm Parts Inc............................... 424 Preferred Welder Sales................................. 702 Prime Attachments....................................... 232 Principal....................................................... 826 Pritchett Twine & Netwrap............................. 710 Producers Hybrids........................................ 336 Pro-Stitch Closing Wheels............................. 820 Q Quality Craft Tools......................................... 522 R Real-Tuff, Inc................................................ 119 Richland Repair............................................ 801 Rob-See-Co.................................................. 326 Rueter’s........................................................ 429 Rush River Steel........................................... 720 S S.I. Feeders................................................... 328 Saddle Butte Ag, Inc...................................... 616 Sanco Equipment.......................................... 112 Schaeffer’s Specialized Lubricants................ 728 Skarpohl Pressure Washer Inc....................... 713 South Dakota State University....................... 117 Southern Minnesota Initiative Foundation...... 405 Specialty Enterprises.................................... 707 St. Joseph Equipment................................... 310 Steffes Group Inc.......................................... 805 Stor-Loc....................................................... 819 Streamline On-Site Repair............................ 634 Structural Buildings Inc................................. 706 Sunopta Grains & Food, Inc........................... 629 T Temple Electric Motor Service....................... 135 Thompson’s Garage Door & Openers............. 261 Timewell Drainage Products......................... 504 Timpte Inc..................................................... 103 Titan Pro....................................................... 708 Todd Norton Construction, Inc./ Wick Buildings.......................................... 808 Toppers & Trailers Plus.................................. 334 Tractor Interior Upholstery............................. 719 Tractor Zoom................................................ 514 U Ultimate Ag................................................... 243 Uncle Tom’s Cornburning & Pellet Stove........ 701 University of Minnesota Extension Service.. 253B University of Wisconsin-River Falls................ 137 Upper Midwest AC Collectors Club.............. 237A W Walters Buildings.......................................... 526 Weatherstar Company.................................. 716 Wholesale Tire & Wheel................................ 255 Wilbur-Ellis Company.................................... 618 Wilson Trailer Sales of Minnesota.................. 827 Wingfield Manufacturing............................... 430 Z Ziegler Cat.................................................... 216 Zoske’s Sales & Service................................ 316

THE LAND — FEBRUARY 23/MARCH 2, 2018

www.thelandonline.com — “Where Farm and Family Meet”

PAGE 15

MFB policy director talks immigration, health care, taxes

By MARIE WOOD The Land Associate Editor MANKATO, Minn. — When Amber Hanson Glaeser was 13, she testified at the state Capitol for biodiesel. Even then, she knew she wanted to be a “grass roots agricultural lobbyist.” Today she is the policy director for the Minnesota Farm Bureau.

In an issues briefing at the Rural Legislative Forum held Feb. 15 in Mankato, she said agriculture’s greatest market opportunity is in trade — North American Free Trade Agreement and exports to Asia and Cuba. She is concerned about the use of ag exports as a “shiny object” in negotiating deals.

“Trade is really our safety net in agriculture,” Hanson Glaeser said.

On immigration, she said the system is broken and agriculture has a very loud voice. Short-term, agriculture needs labor for vegetable farmers; long-term, agriculture needs labor for livestock farms; and cur-

rently we need to address the undocumented people in our country.

The biggest priority for the farm bill is getting it done she said. The good news is that the farm bill is evolutionary and only needs tweaks.

“We know we’re not going to get more money in this farm bill,” she said. “How do we move forward and protect the programs we have without hurting agriculture in rural Minnesota?”

A bipartisan budget bill that passed allocating money for dairy and cotton programs was a great step forward, she said.

Health care remains the biggest issue among Farm Bureau members since the individual market is so costly. Addressing affordability is critical to the farm economy because so much money is going toward health insurance. Farmers are deciding whether they can afford those payments, she said.

On property taxes, Hanson Glaeser said the 40 percent tax credit awarded to farmers and landowners to offset school bond levies was a good start. More work needs to be done on the inequities and structure of property tax in rural areas she said.

The forum panel discussed that the Minnesota Legislature needs to address state taxes due to the passage of the federal tax bill last year. One reason is the new federal law severely limits the deduction of state and local taxes on the federal return.

Hanson Glaeser noted that farmers are still able to deduct property tax as a business expense on their federal return.

She expects taxes and transportation to dominate the session.

She also expects discussions on mental health resources available to farmers as they struggle through these challenging times. v

Forum explores NAFTA from Canada’s viewpoint

By MARIE WOOD The Land Associate Editor MANKATO, Minn. — When it comes to agricultural trade, Minnesota’s largest export market is Canada and Mexico is the second largest. That’s why updating the North American Free Trade Agreement is so important.

At the Feb. 15 Rural Legislative Forum sponsored

by GreenSeam in Mankato, Paul Connors, Consul General of Canada stationed in Minneapolis shared his insights on NAFTA. “We equally like having free trade access to the United States,” Connors said.

In 2016, agricultural trade between Minnesota and Canada was $1.3 billion with Minnesota exporting $725 million to Canada and importing $604 million from Canada. That gives Minnesota a surplus to our northern neighbor if you’re counting.

Since 1994 when NAFTA lifted tariffs, the gross domestic product of all three countries has doubled, trade has tripled and ag trade has more than quadrupled, he said.

“NAFTA does what you expect a free trade agreement to do,” Connors said.

Canada and the United States share a symbiotic relationship. Connors said half of the oats used by General Mills and Quaker come from Canada. Meanwhile Canadian farmers use U.S. farm equipment.

Our beef and pork industries are also integrated.

Most of the animal feed to grow Canada’s pigs and cattle come from the United States. Then Canada’s livestock goes to U.S. plants for processing.

Connors gave a Minnesota example. In 2016, Minnesota exported $100 million in animal feed to Canada. Canada exported $152 million in live animals to

Minnesota. Then Minnesota exported $45 million in prepared meats to Canada.

“It’s a great fantastic relationship between our countries,” he said.

If we get rid of NAFTA, we will revert to trade with tariffs based on World Trade Organization rules.

Tariffs are 26.5 percent on commodities such as beef from Canada.

Canada also gets 99.4 percent of its ethanol from the United States, $126 million from Minnesota alone.

Negotiations NAFTA is heading into the seventh round of talks in Mexico City. It took five years to negotiate NAFTA, but little updates have been done since 1994. The three countries are rewriting all 19 chapters and adding a new chapter on e-commerce. The technical work is going well, Connors reported.

Connors explained the sticking points are proposals from the Trump administration. One is raising the percentage of North American content in dutyfree automobiles. Another proposal changes the dispute settlement mechanism from binding to advisory.

A proposed sunset clause will require all three countries to proactively renew NAFTA every five years.

Canada and Mexico have made counter proposals that should aid negotiations, Connors said.

One criticism of NAFTA has been a loss of manufacturing jobs.

“Three quarters of that job loss is for a very positive economic reason. Technology is making you more productive,” he said.

Since U.S. ag companies and farm groups have spoken out in support of NAFTA, the needle has moved away from the narrow fixation on job loss, Connors

said.

The deadline to renegotiate NAFTA is March 31.

While that may not be feasible, Connors expects the agreement to be negotiated by year-end.

He encourages farmers, farm groups and food companies to continue to speak out on the benefits of the trade agreement. v

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THE LAND — FEBRUARY 23/MARCH 2, 2018

MARKETING

Grain Outlook 2018 corn acreage near last year The following marketing analysis is for the week ending Feb. 23.

CORN — March corn challenged the $3.70 level this week, but was unable to push any higher. Both May and December corn posted key reversals lower on the charts when trading resumed after President’s Day. In the May contract, $3.78 per bushel was the stumbling block.

The contract high in May corn is $4.31.75 set all the way back in July 2016. The high for this contract in 2017 was $4.30 per bushel, hit in July 2017.

The news in this holiday-short- PHYLLIS NYSTROM ened week was essentially the CHS Hedging Inc. same as it has been for weeks.

St. Paul Traders are taking their cues from every weather forecast for South America. Lately, the crop estimates have been declining due to dryness in Argentina and excess moisture in Brazil. In Brazil, the concern is safrinha corn acres won’t get planted in a timely fashion, or at all, due to a delayed soybean harvest. The Rosario Grain Exchange slashed its Argentine corn estimate 5 million metric tons to 35 mmt. The U.S. Department of Agriculture is carrying the Argentine crop at 39 mmt. The Buenos Aires Grain Exchange is slightly higher than the Rosario number at 37 mmt. The International Grains Council lowered its Brazilian corn crop projection from 90.2 mmt to 87.5 mmt.

Safras has Brazil’s corn crop slated at 89.5 mmt. The USDA has Brazil’s corn at 95 mmt. Brazil’s first corn harvest was 25 percent complete as of Feb. 16 vs. 24 percent complete last year. The safrinha corn crop was 33 percent planted, well below last year’s 50 percent complete pace.

The USDA Ag Forum this week indicated the nonsurvey forecast for 2018-19 corn acreage at 90 million acres. The actual acreage survey will be taken March 1-15. This is just a minimal drop from last year’s 90.2 million planted acres. Private traders are anticipating 89.9 million acres to be planted to corn this spring.

The USDA expects a crop production of 14.39 billion bushels using a 174 bushel per acre yield. 201819 ending stocks were pegged at 2.272 billion bushels vs. this year’s 2.352 billion bushels. The average farm price came in at $3.40 per bushel vs. $3.30 this year. The USDA Ag Forum carryout prediction has been below the final number in six out of the last 11 See NYSTROM, pg. 17

Cash Grain Markets

Editor’s note: In the Feb. 16 issue, futures prices for corn and beans were listed for St. Cloud.

corn/change* soybeans/change* St. Cloud $3.38 +.26 $9.59 +.36 Madison $3.21 +.09 $9.54 +.21 Redwood Falls $3.20 +.03 $9.58 +.21 Fergus Falls $3.11 +.04 $9.32 +.25 Morris $3.24 +.13 $9.52 +.40 Tracy $3.24 +.09 $9.50 +.23

Grain Angles Young farmers have optimism

As of the middle of the month of February, the cattle and hog markets seem to be going in opposite directions once again. The hog market is seeing the cash trade slip to lower levels as it did a year ago, while the cash cattle market continues to flourish just near the $130 cwt. level. It appears the supply of animals is the most predominant for both with ample hog supplies and tight cattle numbers at present.

Cattle have continued to find support for several reasons with the first being a lack of market ready cattle at the present time.

The futures market also continJOE TEALE ues to find support from the Broker managed money trade which has Great Plains Commodity Afton, Minn. entered the long side of the futures over the past several weeks. Also supporting the market has been a relatively steady beef cutout which has maintained in the mid-$200 cwt. level to the $210 area cwt. during the same period. All things considered, from a short outlook, this action may hold for a short period of time. However, given the fact that the last series of cattle-on-feed reports suggest that an ample supply of cattle does not seem to be a major problem in the intermediate future. Another consideration would be the competitive meat situation which is now experiencing lower price levels which could affect consumer preferences in the weeks ahead. Considering all these factors, producers should remain aware of the market conditions and protect inventories if needed.

Optimism … As I spoke with some young, beginning and small farmers at a recent conference, this theme kept coming up. Now I realize that you may be questioning my sanity when I say there is optimism in agriculture today; but it is out there if you’re willing to step aside from some of the coffee shop talk. We talked a lot about how to make their operations successful long term, reducing costs, taking advantage of marketing opportunities and planning for the future. We learned about finding our competitive advantage, and igniting our passion to fuel success. Along MIKE PATTERSON the way we also had a little fun, Compeer Sr. Financial getting to know some new people Services Executive and network with other producNorthfield, Minn. ers. It’s always great to hear things from another perspective and talk about what’s been working, what’s not working and gain new ideas and insights.

Best in class Michael Bohlje, senior associate at Centrec Consulting and professor at Purdue University shared a message entitled, “The Farm Economy: How Do You Win in Tough Times?” The piece of his program that seemed to resonate the most with farmers I spoke with was around how to be “Best in Class.”

In order to be successful in 2018 and beyond, producers need to have “intense cost control.” This isn’t just about being cheap. It is about being efficient and productive. You need to analyze each input and determine if spending that additional money will not just improve your yield but improve your yield enough to cover the marginal cost of the product.

Another key to being “Best in Class” is knowing your cost on a per-unit basis. You might say that you don’t know what your cost per unit is because you don’t know the yield you will get. That is true.

However, you do have an actual production history from your crop insurance, or a Dairy Herd Improvement Association report that shows your herd averages, don’t you? Use an average or expected production level to determine your cost per unit. The best producers I work with can tell me their cost of production for 2018 in less than 10 seconds. Do you know yours?

Finding your competitive advantage is another key

See TEALE, pg. 19

See PATTERSON, pg. 17

Average: $3.23 Year Ago Average: $2.98

$9.51 $8.98

Grain prices are effective cash close on Feb. 27. *Cash grain price change represents a two-week period.

Livestock Angles Cash cattle market flourishes

Information in the above columns is the writer’s opinion. It is no way guaranteed and should not be interpreted as buy/sell advice. Futures trading always involves a certain degree of risk.

THE LAND — FEBRUARY 23/MARCH 2, 2018

www.thelandonline.com — “Where Farm and Family Meet”

PAGE 17

November soybeans, March meal hit contract highs NYSTROM, from pg. 16 years. Nothing from these numbers got the market excited.

Weekly export sales were fabulous at 61.2 million bushels and above expectations. With total commitments at 1.5 billion bushels, we are only 12 percent behind last year. The USDA is anticipating a 10.5 percent decline in year-on-year exports, so we are gaining ground. The USDA’s 2.05 billion bushel export number looks realistic. Weekly ethanol production rose 52,000 barrels per day to 1.068 million bpd. Stocks were down 100,000 barrels to 22.8 million barrels. Crush margins were unchanged weekon-week at 18 cents per gallon. Gasoline demand over the past four weeks has averaged 5.4 percent higher than a year ago.

Outlook: Corn continues to be well supported by good demand and concerns over South American crops. The USDA Ag Forum’s outlook for a slightly lower year-on-year carryout number was slightly supportive. Limiting the upside would be ample world stocks, including in the United States. For the week, March corn fell 1.25 cents to $3.66.25, July was off a half-cent at $3.82.25, and December corn gained a quarter-cent at $3.97.25 per bushel. The March contract did put in a fresh high for the move early in the week at $3.70/bu.This will be the next upside resistance level. March corn has traded between $3.64.25 to $3.70 since Feb. 12. At this time, it feels like a pretty comfortable range.

SOYBEANS — Buy until proven wrong! Traders haven’t tired of that call yet, as was shown again this week with another upswing in prices. Is the contract high of $10.50.5 in March soybeans in the crosshairs? As February closes, we’ll be switching to the May contract for key points. The contract high in the May soybeans is $10.53 per bushel, set last July.

MARKETING The USDA’s Ag Forum put 2018-19 planted acreage at 90 million acres. This is a small decrease from last year’s 90.1 million acres, and lower than private trade estimates for 90.6 million planted acres. On the 2018-19 balance sheet, they predicted production at 4.32 billion bushels when a 48.5 bu./acre yield is factored in. Carryout for 2018-19 was projected at 460 million bushels, down from this year’s 530-million-bushel estimate. They pegged the average farm price for soybeans at $9.25 per bushel vs. $9.30 this year. The USDA’s Ag Forum soybean carryout number has been higher than the final figure in nine out of the last 11 years by an average of 136 million bushels.

The production forecasts for Argentina continue to shrink. This week, the Rosario Grain Exchange cut their bean estimate 5.5 mmt to 46.5 mmt. This compares to the USDA’s 54 mmt projection (which no one really believes is accurate). The Buenos Aires Grain Exchange is at 47 mmt and Agroconsult is at 49 mmt. The trade is likely factoring in a 47-48 mmt number. In Brazil, Safras and Mercado are predicting a record 115.6 mmt soybean crop. AgRural is even more optimistic with a 116.2 mmt expectation.

But Agroconsult takes the prize with a 117.5 mmt outlook! The USDA’s latest Brazilian number is 112 mmt. Brazil’s soybean harvest was 16 percent complete as of Feb. 16. The average pace is 20 percent complete.

Weekly export sales were unexpected with net cancellations of 4 million bushels. China cancelled 13.3 million bushels, with other smaller cancellations coming from unknown. We are back to being 14 percent behind last year on total commitments. We have

sold 1.6 billion bushels and the USDA is forecasting exports of 2.1 billion bushels, just a 3.5 percent decline year-on-year. We need to average an impressive 17.2 million bushels per week of sales to hit the USDA’s target. This would be an increase of 56 percent from last year’s March to August exports. Are we looking at the possibility that ending stocks this year could be north of 600 million bushels?

Argentina’s truckers are back on strike, blocking roads and limiting soybeans access to ports. If this is a short-lived strike, we shouldn’t feel any long-term effects to shipments. They are protesting lower heating and gas subsidies, among other things. It’s a possibility the strike could continue into harvest season.

Argentina’s soybean harvest usually begins the third or fourth week of March and hits the 50 percent mark the beginning of May. Outlook: November soybeans posted a new contract high this week at $10.32.5 per bushel, as did March meal at $385.50 per ton. An underlying attitude of “buy breaks” has served the soybean bull well.

This week, March soybeans jumped 14.75 cents higher to settle at $10.36.25, July rallied 13.75 cents to $10.56, and November beans settled 6 cents higher at $10.28 per bushel.

The balancing act between how small Argentina’s bean crop may be and how large Brazil’s bean crop could be has not been resolved. However, traders are focusing on the problems and continue to add to their net long position. Dismal demand for U.S. soybeans and a tremendous 2017-18 carryout have been designated as tier two news. How high do we need to go to have factored in South American crop losses? Good question, and one that hasn’t been answered yet. The next target for March soybeans may be their contract high of $10.50.5 per bushel, set last July. But be prepared for a swift reversal if crop conditions change.v

Communication is key to successful transfer of ownership PATTERSON, from pg. 16 to winning in tough times. What do you do better than anyone else? Focus on and intensify these things to do them even better. These aren’t new concepts, but more of a back-to-basics approach that will help you be successful.

Marketing Marketing is a topic for discussion at just about every farm meeting ever held. If every producer did it well, we wouldn’t be talking about it so much. Ed Usset, from the University of Minnesota’s Center for Farm Financial Management, talked about some of the common grain marketing mistakes and how to avoid them. Marketing has been a tough discussion item for a while, but there seems to be some life in commodity markets recently. Many young producers really know their stuff on marketing and are waiting to take advantage of pricing opportunities. They have learned to be ready to act quickly as prime marketing windows have been short lived in past years.

Succession planning Another topic that is near and dear to the hearts of many farmers is retirement and succession planning. This is always a little bit of a difficult topic to handle in a large group since every situation is different. However, there are always some keys to making this process of transition of ownership work.

In talking with this group, I kept hearing that communication is key to this process working well. Also, working with good professionals such as a consultant, attorney and accountant are keys to success. If you or your operation are in need of assistance, reach out to the professionals you are already working with to help steer you in the right direction. Remember, putting together a good plan can take some time and effort, but a successful transition is worth it in the end.

Many times when we go to conferences, we just sit with the same people and talk to our same group of friends. Try searching out others who you don’t know as well to build your personal network. If you

make a good connection, keep in touch to bounce ideas back and forth for your operations.

Overall, I would say our future is in great hands.

The young, beginning and small farmers I talk with are very optimistic for their future. The long term view for agriculture is positive, as every day there are more mouths to feed in this world. Many of those mouths are in developing countries that are growing their wealth. As they grow that wealth they will want to eat better, and that means increased demand for our agricultural products.

American agriculture has shown time and time again that we are up to the challenge of feeding a hungry world. These young producers are up to the challenge. They have passion, resiliency, and determination to be some of the best agricultural producers in the world — and they will be.

For additional insights from Compeer industry experts or to learn more about Compeer’s programs, check out Compeer.com/education. v

PAGE 18

MILKER’S MESSAGE

THE LAND — FEBRUARY 23/MARCH 2, 2018

Good weather key to improved milk output in January This column was written for the marketing week ending Feb. 23.

WE BUILD OUR STALLS RIGHT! The U.S. Department of Agriculture projects U.S. milk output to hit 218.7 Take a look at billion pounds in 2018 and January outour tubing with put was off to a good start to achieve unequaled corrosion that number. According to preliminary News and information for Minnesota and Northern Iowa dairy producersprotection! data, production hit 17.3 billion pounds in the top 23 states. This is up a bearFreudenthal has beenis The 2017 official milk output total is 215 showed positive gains versus a year ago.Tubing Weather MIELKE MARKET ish 1.8 percent from January 2017 and engineered for your specific billion pounds, up 1.4 percent from 2016. the key component there.”

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Stalls head in the 23 states, up 4,000 from December and FC Stone dairy broker Dave Kurzawski, speaking Dairy’s weakening bottom line resulted in on sharply 49,000 more than a year ago. The 50-state total, at the in the Feb. 26 Dairy Radio Now broadcast, called higher dairy cow culling.

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THE LAND — FEBRUARY 23/MARCH 2, 2018

MILKER’S MESSAGE

PAGE 19

U.S. cheese prices are sparking international interest MIELKE, from pg. 18 were slaughtered under federal inspection in January. This is up 42,500 head from December, and 20,800 head or 7.7 percent above a year ago. n Red ink returned to the Feb. 20 Global Dairy Trade auction. The weighted average of all products offered inched back 0.5 percent, following the 5.9 percent upshot on Feb. 6 and 4.9 percent on Jan. 16.

The quantity sold slipped to 44.7 million pounds, down from 48.9 million in the last event.

The losses were led by skim milk powder, down 3 percent, following a 7.2 percent increase on Feb. 6.

Anhydrous milkfat was down 1.9 percent, after inching up 0.5 percent last time, and GDT cheddar was down 1.3 percent after posting a 7.2 percent gain.

Butter was up 1.1 percent following a hefty 7.9 percent increase last time and rennet casein inched up 0.7 percent, after it jumped 5 percent in the last event.

FC Stone equates the GDT 80 percent butterfat butter price to $2.3606 per pound U.S. Chicago Mercantile Exchange butter closed Feb. 23 at $2.1725. GDT cheddar cheese equated to $1.6721 per pound U.S. and compares to Feb. 23’s CME block cheddar at $1.4950. GDT skim milk powder averaged 83.10 cents per pound U.S., and whole milk powder averaged $1.4724. CME Grade A nonfat dry milk price closed Feb. 23 at 67.25 cents per pound.

Kurzawski called the GDT slippage, “a breather” and “a non-event,” as New Zealand milk output is struggling, down about 7 percent on a milk solids basis. n Meanwhile, the USDA’s latest Cold Storage report shows Jan. 31 butter stocks grew to 223.9 million pounds, up 55.1 million pounds or 32.6 percent from December and 2.3 million or 1 percent above January 2017.

American-type cheese stocks hit 738.2 million pounds, down 8.6 million pounds or 1.2 percent from December but 15.8 million or 2.2 percent above a

year ago. The “other cheese” category totaled 508.5 million pounds, virtually unchanged from December but 14 percent above a year ago.

The total cheese inventory stood at 1.275 billion pounds, down 5.3 million pounds or virtually unchanged from December; but 83 million pounds or 6.7 percent above a year ago.

The cash cheese market lost ground in the President’s Day holiday-shortened week. Cheddar block cheese inched up to $1.55 per pound on Feb. 21, only to shrink back and close two days later at $1.4950. This is down 4.5 cents on the week and 8 cents below a year ago. The barrels finished at $1.46, down 2 cents on the week, 5.75 cents below a year ago, and a more normal 3.5 cents below the blocks. Only three cars of block were sold on the week at the CME and 31 of barrel.

Dairy Market News reports milk continues to flow into Midwest cheese vats and at a discount — ranging $1 to $3 under Class III. Cheese sales are steady to higher, and some mozzarella producers have reported upticks in demand. Some cheese producers relay that CME prices “have been on the right track recently, as barrel prices increase to meet blocks. All market participants are not so bullish though, as they suggest buyers are aware of the tumultuous markets in recent months and are more hesitant to purchase when prices are on the rise.”

Western cheese output is in line with current milk volumes. Nonetheless, some plants are reviewing schedules to avoid further accumulation of cheese in storage. Overall, stocks are ample, says Dairy Market News, and “The U.S. cheese market seems to be competitive compared to the rest of the world.”

Domestic sales are flat, but some contacts report interest from the international market has increased some, due to higher cheese prices in the European Union and Oceania. n In another week of heavy trading, cash butter climbed to $2.19 per pound on Feb. 21, then slipped to $2.16 the next day, but closed Feb. 23 at $2.1725.

This is up 7.25 cents on the week and 4.25 cents above a year ago. An impressive 44 cars were sold

Packers back off live hog inventory TEALE, from pg. 16 The hog market is experiencing a sell off in the cash market which almost mirrors last year’s market. The cash trade has dropped over $7 in the last several weeks as supplies have more than met packer demand. This is quite surprising as kill capacity has been on the increase over the past year.

Packer margins for a brief time had narrowed to a point that the profit margin was endangered of going negative and at that point the packers backed off their aggressive bidding for live inventories. The pork cutout has backed off the highs of the year dur-

ing this recent sell off, which has aided in the negative attitudes in the hog trade as of late.

From the futures standpoint, the market is closing in on being oversold and considering the discount at present to the lean index, the market may be approaching some sort of low in the weeks ahead. Of course this will be dependent on the current supply and demand at any specific time. Therefore, producers should act accordingly to current market conditions and the outlook at the time and act accordingly to those conditions. v

on the week, down from 72 the week before.

Cream supplies are tightening for butter production in the Central region, according to Dairy Market News. “Upper Midwest butter makers suggest increased Class II production is beginning to cut into the recent accessibility of cream. Butter churning ahead of spring remains fairly active. Some contacts have noted the annual March 1 deadline to sell loads of butter onto the CME produced prior to Dec. 1, 2017. In recent years, notable market price increases have occurred in the waning days of See MIELKE, pg. 20

PAGE 20

MILKER’S MESSAGE

THE LAND — FEBRUARY 23/MARCH 2, 2018

Slight recovery in milk prices help offset rise in feed costs MIELKE, from pg. 19 February or on the earliest trading days in March.

Contacts are unsure as to where the markets will trend in the next two weeks, but some are expecting an uptrend relative to years past.”

Western butter makers report that higher prices in

some international markets “may offer more export opportunities for U.S. butter, or at least, hinder large volumes of imports from entering the United States.”

Domestic retail orders for the spring holidays are reported to be strong and building. However, with abundant supplies of cream available, butter produc-

tion is equally strong, Dairy Market News warns.

Inventories are heavy and still growing.

“Manufacturers would feel more sanguine about the near term butter market if butter stocks could be drawn down in the next few weeks,” stated Dairy Market News. “Market participants seem eager to move spot loads of butter prior to the March 1 deadline for older stock sales on the CME. A few contacts suggest there are a number of bulk butter loads moving at discounted prices to brokers across the West.” n Chicago-based Commodity and Ingredient Hedging’s latest Margin Watch reports, “Dairy margins were flat to slightly higher over the first half of February as a recovery in milk prices helped to offset the impact of higher feed costs with advancing corn and soybean meal prices. Margins still remain negative through the first half of 2018 and well below average from a historical perspective, while projected positive but only just above breakeven through the second half of the year.”

“Milk prices have started to firm,” the Margin Watch states, “as the National Dairy Product sales reports have come in higher than expected over the past month while world butter prices are firming and CME cash butter has recovered after testing a low from mid-November recently. While global dairy stocks remain high and there are concerns moving into the northern hemisphere’s spring flush season, it would appear that much of the negative bias in dairy market fundamentals may have already been fully digested for now.

“On a negative note, feed costs have started to advance recently on weather concerns in Argentina.

Soybean meal prices in particular have appreciated sharply since the beginning of February as drought conditions intensify, with Argentina supplying nearly half of world meal exports. In their most recent monthly World Agricultural Supply and Demand Estimates report, USDA cut Argentina’s soybean crop forecast by 2 million tons, although their projection for soybean meal exports remained unchanged from January. USDA also cut Argentina’s corn crop by 3 million tons from the previous estimate, with further reductions likely given an unfavorable forecast over the near to medium-term,” according to the Margin Watch. n Last, but certainly not least, our thoughts and prayers go out to a Minnesota dairy family, Richard and Sally Swartz and son Richard Jr. who lost their dairy barn and cows to a Feb. 16 fire. The farm is located east of Motley in the northern part of the state.

Lee Mielke is a syndicated columnist who resides in Everson, Wash. His weekly column is featured in newspapers across the country and he may be reached at lkmielke@juno.com. v

THE LAND — FEBRUARY 23/MARCH 2, 2018

www.thelandonline.com — “Where Farm and Family Meet”

PAGE 21

Check all options when buying crop insurance During the next few weeks, many farm policies; and the harvest price is used to operators will be finalizing their crop determine the harvested crop value for RP insurance decisions for the 2018 crop year. and RPE policies.

March 15 is the deadline to purchase crop For 2018, most Midwest corn and soyinsurance for the 2018 crop year. bean producers will have the opportunity Profit margins for crop production this to utilize the trend-adjusted actual proyear remain very tight, which makes the duction history yield endorsement, which 2018 crop insurance decisions even more has proven to be quite favorable. critical. Producers have several crop RP and RPE price calculations for insurance policy options to choose from, FARM PROGRAMS corn and soybeans including yield protection policies and

By Kent Thiesse Corn — base price for RP and RPE polirevenue protection policies, as well as cies is the average settlement price several other group insurance policy for December CBOT corn futures options. There are also decisions with during the month of February. using enterprise units versus optionHarvest price for RP and RPE polial units, and whether or not to take advantage of the cies is the average settlement price for December trend adjusted actual production history yields for CBOT corn futures in October during the year of 2018. harvest, which may be used to set the guarantee for Yield protection insurance policies RP polies, but not RPE policies.

Yield protection policies provide protection from The harvest price maximum for RP is limited to the yield losses only. The price guarantee for yield pro- base price times 200 percent. (Example: $3.95/bu. tection policies for corn is the average settlement base price times 2 equals $7.90/bu. maximum) There price for December Chicago Board of Trade corn are no restrictions regarding downside price movefutures in February, and for soybeans is the average ment. price for November soybean futures in February.

Soybeans — Base price for RP and RPE policies is Producers may select coverage ranging from 50 to the average settlement price for November soybean 85 percent of the actual production history or proven futures during the month of February. yield to arrive at a yield guarantee. (Soybean examHarvest price for RP and RPE policies is the averple: 55 bu./acre actual production history multiplied age settlement price for November CBOT soybean by 85 percent (.85) equals a yield guarantee of 46.75 bu./acre.) Replant and prevented planting coverage futures in October during the year of harvest, which may be used to set the guarantee for RP polies, but apply to yield protection policies. not for RPE. The harvest price maximum for RP is Indemnity payments are calculated by subtracting limited to the base price times 200 percent. (Example: the harvest yield on a farm unit from the yield guar- $10/bu. base price times 2 equals $20/bu. maximum.) antee and multiplying times the yield protection There are no restrictions regarding downside price market price minus the crop insurance premium. movement.

(Soybean example: A 46.75 bu./acre guarantee minus 2018 yield protection, RP and RPE crop insurance a 40.0 bu./acre harvest yield is 6.75 bu./acre. Multiply 6.75 times the yield protection market price of $10/ base prices will be finalized on March 1. As of Feb. 9, bu. Subtract the $8/acre crop insurance premium to the base prices are estimated at $3.93/bu. for corn; $10.01/bu. for soybeans; and $6.30/bu. for wheat. arrive at a figure of $59.50/acre.)

Comparing the results of similar RP to RPE Revenue protection insurance policies The revenue protection and revenue protection crop insurance policies: Soybean loss example 1 (Where harvest price is with harvest price exclusion (RPE) insurance polilower than base price) using an 85 percent RP or cies function essentially in the same manner, except RPE insurance policy (enterprise units): Actual prothe guarantees on RPE policies are not affected by harvest prices that exceed the base price. Most corn duction history yield of 55 bu./acre; a 48 bu./acre and soybean producers utilize RP policies. However, harvest yield; a CBOT base price of $10/bu.; a CBOT in many years, the RPE policies can offer good pro- harvest price of $8/bu.; and premiums of $14/acre RP or $10/acre RPE. tection at a lower premium cost.

55 bu./acre at $10/bu. times 85 percent equals a The actual production history yield guarantee, farm unit determinations, insurance coverage selec- revenue guarantee of $467.50/acre. 48 bu./acre at $8/ tions (50 to 85 percent), replant, and prevented bu. equals a harvested crop value of $384/acre. The planting coverage, etc. for RP and RPE policies are revenue guarantee of $467.50/acre, minus the harvested crop value of $384/acre, minus the RP premithe same as for yield protection policies. um of $14/acre, equals an RP indemnity payment of All RP and RPE prices are based on Chicago Board $69.50/acre. Using the RPE premium of $10/acre, the of Trade futures prices — not cash prices.

RPE indemnity payment would be $73.50/acre.

The higher of the base price or the harvest price is Note: If the coverage level in the previous example used to calculate revenue guarantee per acre for RP is decreased to 75 percent, the revenue guarantee is

MARKETING

decreased to $412.50. Assuming a harvested crop value of $384/acre and a premium cost of $5/acre for RP and $2.50/acre for RPE, the resulting indemnity payments would be $23.50/acre for RP and $26.00/ acre for RPE. Soybean loss example 2 (Where harvest price is higher than base price) using an 85 percent RP or RPE insurance policy (enterprise units): Actual production history yield of 55 bu./acre; a 40 bu./acre harvest yield; a CBOT base price of $10/bu.; a CBOT harvest price of $12/bu.; and premiums of $14/acre RP or $10/acre RPE. 55 bu./acre at $12/bu. times 85 percent equals an RP revenue guarantee of $561/acre. 55 bu./acre at $10/bu. times 85 percent equals an RPE revenue guarantee of $467.50/acre. A yield of 40 bu./acre times a CBOT harvest price of $12/bu. equals a harvested crop value of $480/acre. The RP revenue guarantee of $561/acre, minus the harvested crop value of $480/acre, minus the RP premium of $14/acre, equals an RP indemnity payment of $67/acre. Using the RPE revenue guarantee of $467.50/acre, minus the harvested crop value of $480/acre, minus the RPE premium of $10/acre, would result in a zero RPE indemnity payment.

Note: The scenario in example 2 really comes into play in a year of a major drought, such as in 2012, or national yield reduction from another cause, which results in a sharp increase in grain prices during the growing season. This situation did occur in 2012, which led to a wide discrepancy in crop insurance indemnity payments between RP and RPE policies, and has resulted in most producers not giving considSee THIESSE, pg. 23

PAGE 22

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PAGE 23

Analyze yield risk on each unit for determining coverage THIESSE, from pg. 21 eration to RPE policies in recent years. Since 2012, in most locations which received crop insurance indemnity payments, RPE payments have equaled or exceeded RP payments at comparable insurance coverage levels (percent coverage, units, TA yields, etc.).

The question to ask yourself is, “Are you willing to take on the risk of situation similar to the 2012 drought just to save a few dollars per acre in premium cost?”

The decision between enterprise units and optional units Enterprise units combine all acres of a crop in a given county into one crop insurance unit; while optional units allow producers to insure crops separately in each individual township section. Enterprise units usually have considerably lower premium costs (approximately $4-$7/acre) compared to optional units for comparable RP and RPE policies.

Producers should be aware that enterprise units are based on larger coverage areas. They do not necessarily cover losses from isolated storms or crop damage which affect individual farm units — such as damage from hail, wind or heavy rains. So additional insurance, such as hail or wind insurance, may be required to insure against these types of losses. It is also important for producers to run “what if ” scenarios when analyzing the comparison between enterprise units and optional units.

Many times, producers automatically opt for enterprise units every year — due to the lower premium cost per acre for similar coverage — and probably not totally understanding the differences in coverage. It is important to analyze the yield risk on each individual farm unit when determining if paying the extra premium for insurance coverage with optional units makes sense. If a producer has uniform soil types and drainage, in a close geographical area, and is primarily concerned with a price decline, an RP or RPE policy with enterprise units is probably a good option. However, if a producer has farm units that are more geographically spread out, with more variation in soil types and drainage, and has greater concerns with yield variability, they may want to consider a RP policy with optional units.

Key items in 2018 crop insurance decisions 2018 crop insurance premiums for most coverage levels of corn and soybeans in the Midwest should be similar or slightly lower than comparable 2017 premium levels. This is due to similar base price levels for both crops in 2018 (based on early February estimates) and a relatively low volatility level compared to recent years.

There are a wide variety of crop insurance policies and coverage levels available. Make sure you are comparing apples to apples when comparing crop insurance premium costs for various options or types of crop insurance policies. Recognize the limitations and

MARKETING

the differences of the various crop insurance products.

Use caution in moving forward with area risk protection crop insurance plans. Some insurance companies and analysts have been promoting the ARP crop insurance option for 2018 — due to the ability to purchase up to the 90 percent coverage level using the same price structure as RP policies. However, be aware that ARP policies use county-level yields for APH yield guarantees and final harvest yields, whereas RP policies utilize the farm APH yields to calculate the initial insurance guarantee. There also would be no yield protection against isolated yield losses on individual farm units with APH policies.

APH works best if your primary risk management concern is price protection; but not as well if you are also concerned with yield risk. In many cases, premium levels for a 90 percent ARP policy are as high or higher, compared to a standard 85 percent RP policy with enterprise units.

2018 crop insurance premiums for most coverage levels of corn and soybeans in the Midwest should be similar or slightly lower than comparable 2017 premium levels. This is due to similar base price levels for both crops in 2018 and a relatively low volatility level compared to recent years.

View crop insurance decisions from a risk-management perspective. Given the tight profit margins for crop production in 2018, some producers may have a tendency to reduce their crop insurance coverage in order to save a few dollars per acre. However, a producer must first decide, “How much financial risk can I handle if there are greatly reduced crop yields due to potential weather problems in 2018, and/or lower than expected crop prices?” RP crop insurance policies serve as an excellent risk management tool for these situations, and 2018 may not be the year to reduce insurance coverage.

Take a good look at the 85 percent coverage levels — especially when using enterprise units with RP insurance policies. Most Midwest corn and soybean producers have been utilizing a minimum of 80 percent RP coverage with enterprise units in recent years. 2018 may be the time to consider upgrading to the 85 percent coverage level — especially for soybeans. In many cases, the 85 percent coverage level offers considerably more protection with a modest increase in premium costs. Many producers will be able to guarantee near $550 to $650 per acre for corn; and near $350 to $450 per acre for soybeans at the 85 percent coverage level for 2018, when also utilizing trend-adjusted APH yields.

Compare the insurance coverage and premium costs of RP and RPE insurance policies. Remember, if the harvest price (average CBOT price in October)

for corn or soybeans is lower than the base price (average CBOT price in February), the RP and RPE payment calculations function similarly. And RPE premium costs are slightly less than RP premiums at similar coverage levels. However, recognize the added risk of utilizing a RPE policy when the final harvest price exceeds the base price and your farm unit(s) have a yield loss that exceeds the insurance coverage level.

In most instances, utilize the trend-adjusted actual production history endorsement for 2018. Many producers in the upper Midwest have been able to significantly enhance their insurance protection in recent years by utilizing the TA-APH option — with only slightly higher premium costs. Using the TA-APH endorsement is a very good crop insurance strategy for most eligible corn, soybean and wheat producers.

Consider using the APH yield exclusion where available. The yield exclusion option allows specific years with low production to be dropped from crop insurance APH yield guarantee calculations. Several counties in central and northern Minnesota are eligible for yield exclusion for corn and soybeans in some of the past 10 years. Most counties in southern and western Minnesota (except for the Red River valley) are not eligible for the yield exclusion for corn and soybeans. For information on which counties, crops and years are eligible for yield exclusion, go to the RMA web site at www.rma.usda.gov.

Consider the supplemental coverage option if eligible. The SCO crop insurance option is available in 2018 for corn and soybeans in most major producing counties. SCO is only available to producers that choose the price loss coverage option of the new farm program as part of the 2014 farm bill. Over 97 percent of the corn and soybean crop base acres in Minnesota and Iowa are enrolled in the ARC-CO farm program option, and thus are not eligible for SCO insurance coverage. Eligible producers should check with their crop insurance agent for details on SCO insurance coverage.

A reputable crop insurance agent is the best source of information to find out more details of the various coverage plans, to learn more about the TA-APH yield endorsement, to get premium quotes, and to receive assistance with finalizing 2018 crop insurance decisions. Some very good websites with crop insurance information are www.farmdoc.illinois.edu/ cropins/index.asp and www.rma.usda.gov.

Kent Thiesse is a government farm programs analyst and a vice president at MinnStar Bank in Lake Crystal, Minn. He may be reached at (507) 726-2137 or kent.thiesse@minnstarbank.com. v

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Announcements

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010 Real Estate Wanted

021

WANTED: Land & farms. I GUN SHOW, have clients looking for March 9, 10, 11 dairy, & cash grain operaMenards Expo Center, tions, as well as bare land Highway 312, parcels from 40-1000 acres.

Fri. 3-8, Sat. 9-5, Sun. 9-3, Both for relocation & inAdmission $7, vestments.

If you have 14 & Under Free. even thought about selling (608)752-6677 contact: Paul Krueger, www.bobandrocco.com Farm & Land Specialist, Edina Realty, SW Suburban Real Estate 020 Office, 14198 Commerce Ave NE, Prior Lake, MN FOR SALE by Owner: Cen55372. tral WI Grade A Dairy paulkrueger@edinarealty.com Farm. 196 acres (approx (952)447-4700 105 acres tillable). New roof on house & barn, 51 Hay & Forage Equip 031 stall barn w/ pipeline, liquid manure pit, (2)18'x60' silos, '04 Hesston 4760 Tandem, heifer shed w/feed bunk, Applicator, Roller chute, 44'x80' machine shed Last Bale Eject, Knotter w/shop, & 5 bdrm, 1 bath Fan, Auto Lube, 18,666 house w/wood & oil heat.

Bales, $32,500. 651-380-0799 (715)257-7350 '12 NH Big Baler 330 Crop Sell your land or real estate cutter, Single Axle, Harvest in 30 days for 0% commisTech Applicator, 10,000 sion. Call Ray 507-339-1272 bales, $52,500. 651-380-0799

Realignment

OPENS: FEBRUARY 26 / CLOSES: MARCH 6

2018

AUCTION LOCATION: 2162 Co Rd 16, Breckenridge, MN

PREVIEW: February 21-March 6, from 8:00 AM - 5:00 PM LOADOUT: March 7-10, from 8:00 AM - 5:00 PM

Tractors / Combines / Heads / Planters Tillage Equipment / Semi Tractor, Truck & Pickup / Trailers / Sprayer / Chemical/ Fertilizer Equipment Other Equipment Steffes Group, Inc. 2000 Main Ave E, West Fargo, ND | 701.237.9173

SteffesGroup.com Scott Steffes MN14-51

RIVER VALLEY FARMS. Doug, 701.403.9011 or Dave Krostue at Steffes Group, 218.779.6865

TERMS: All items sold as is where is. Payment of cash or check must be made sale day before removal of items. Statements made auction day take precedence over all advertising. $35 documentation fee applies to all titled vehicles. Titles will be mailed. Canadian buyers need a bank letter of credit to facilitate border transfer.

THE LAND — FEBRUARY 23/MARCH 2, 2018

PLANNING AN AUCTION?

Get the best results when you advertise in THE LAND! Tell your auctioneer or call our friendly staff at 507-345-4523 or 800-657-4665

Hay & Forage Equip

031

'99 Case IH 8575 Baler Silage Special, Roller chute, Knotter Fans, Auto Lube, Applicator, 27,740 Bales, $26,500. 651-380-0799 FOR SALE: '09 NH BB9060 baler, steerable tandems, crop cutter, HarvesTech applicator, auto greaser, last bale eject, light pkg, 29,000 bales, been thru shop, field ready, 2 cameras, $35,000. 320-510-0468 Haybuster bale shredder, saves on hay & bedding, rakes up frozen and dusty bales, used, starting at $6,250. 320-543-3523 Bins & Buildings

033

Stormor Bins & EZ-Drys.

100% financing w/no liens or red tape, call Steve at Fairfax Ag for an appointment. 888-830-7757 Grain Handling Equip

034

Wilson grain trailer 40', aluminum, new ag hoppers, electric roll tarp, electric traps, spring ride, $18,000.

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Hay Auction Tuesday, March 13th, 2018 - 3 pm 55780 St Hwy 19, Winthrop, MN 1/4 mile west of Hwys 19 & 15 Intersection Mages Land & Auction Service will be hosting a hay consignment auction the second Tuesday of every month at 3 pm.

Small or big squares and big rounds, all types and kinds of straw, hay & grass. Sellers are responsible for testing if they wish to.

Bring your trailers! No Buyer’s Premium!

Auctioneers: Matt Mages 507-276-7002, Lic. 08-17-003 & Ryan Froehlich 507-380-9256 magesland.com

PRO PUMPING ESTATE THURSDAY, MARCH 8 | 11AM

2018

THE LAND — FEBRUARY 23/MARCH 2, 2018

LOCATION: Westport St., Villard, MN 56385 From Villard, MN, 5 miles east on County Road 28, on the north side of road.

AUCTIONEER’S NOTE: Major equipment begins selling at 11:15 AM. Live online bidding available on major equipment. Registration, terms, & details at SteffesGroup.com

MFWD TRACTORS / LAGOON CRAWLER / TRAILER-MOUNTED PUMPING STATIONS / TRUCK & TRAILERS / DRAG HOSE AND MAINLINE MANURE HOSE / HOSE REELS / HOSE MOVERS / APPLICATORS / FLOW METERS / AGITATORS / LARGE INVENTORY OF PARTS / ROAD CROSSINGS See SteffesGroup.com For Full List

Steffes Group, Inc., 24400 MN Hwy 22 South, Litchfield, MN 55355

320.693.9371

SteffesGroup.com

Ashley Huhn MN47-002

GIERKE FARMS LLC

For information contact Jean 320.293.5987 or Ashley Huhn at Steffes Group, 320.693.9371 or 701.238.1975

TERMS: All items sold as is where is. Payment of cash or check must be made sale day before removal of items. Statements made auction day take precedence over all advertising. $35 documentation fee applies to all titled vehicles. Titles will be mailed.

PAGE 26

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THE LAND — FEBRUARY 23/MARCH 2, 2018 Grain Handling Equip

034

FOR SALE: REM Grain vacuum, needs some repair, $2,000. (507)445-3178 FOR SALE:Used grain bins, floors unload systems, stirators, fans & heaters, aeration fans, buying or selling, try me first and also call for very competitive contract rates!

Office hours 8am-5pm Monday – Friday Saturday 9am - 12 noon or call 507-697-6133 Ask for Gary Farm Implements

035

26' Glencoe soil finisher very good cond. Ken Brown, Elmwood, WI. 715-556-3641 320 JD skid loader, 200 hrs. on new crate eng & tires, cab, $13,000. 715-572-5678 FOR SALE: Int'l 5100 12' grain drill w/ grass & acre counter. 507-334-9333 FOR SALE: JD 328 baler, w/#40 ejector, electric control. Also, Patz bedding chopper w/Honda engine.

715-896-2739 FOR SALE: JD 370 flail mower, 3pt, Cat I, 540 PTO, nice, $1800; Int'l 133 4R30” cultivator, shields, extra shanks, $600. (507)847-2710 FOR SALE: Van Dale manure tanker, 4000 gallon, HD 28Lx26 tires, always shedded. Great shape. 320241-5442 JD 7000 8x30 planter, liquid fert, Yetter trash whippers, corn & bean meters, $3,900; Case IH 183 8x30 vibra tine cultivator, $850; White 8x30 single shank cultivator, $450; NH 654 4'x6' round baler, twine tie, wide pickup, nice, $5,450; Top Air TA1100, 80' sprayer, 13.6x38 tires, Raven controls, $4,900; D&B 1000 gal tender trailer w/ pump, hoses, 15 gal chem inductor, $3,900.

320-769-2756

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TRACTORS

(I) John Deere 4010, 2WD, Diesel, Transmission gone through………….$11,500 (I) 2013 JD 6125M, MFWD, 24 Spd. Pwr. Quad, Cab, 160 Hrs. ………….$74,900 (I) JD 4450, Cab, 2WD, Quad Range, 140 PTO Hp, Fresh overhaul.…….$35,900 (R) JD 4250, Cab, 4WD, Pwr Shi�, 8900 Hrs. 540/1000 PTO………………$25,900 (R) 1993 JD 8570, Cab Heat/AC, Radio, Quad Range, Duals……………….$39,500 (R) 2015 JD 6155R, Cab, MFWD, Duals, Guidance Ready, 640R Ldr….$145,000 (R) 2015 JD 7230R, Cab, MFWD, Duals, e23 Trans, 4 Remotes…………$169,900 HAY EQUIPMENT (I) JD 466 Round Baler, Twine/Net, Push Bar, Monitor……………………...$13,900 (R) 2014 JD 835 Center Pull MOCO, 11’6” Cut, Impeller, 3pt Hookup..$28,900 SKID STEER LOADERS (I) 2013 JD 333E Track Loader, Cab Heat/AC, Joys�ck, 2 Speed………...$49,900 (I) 2012 JD 320D, Cab w/Heat/AC, Foot Controls, 2 Speed, 900 HRS...$26,900 (R) 2010 JD 318D Skid Steer, Cab, Heat/AC, 2‐Spd, Foot Controls……..$25,900 LAWN & GARDEN TRACTORS AND ZERO TURN MOWERS (I) 2003 JD X475 Garden Tractor, 23 Hp Liq. Cool Kawasaki, 62”……….$3,500 (I) 15’ JD X738 Garden Tractor, 25 Hp EFI, 4WD, 3pt Hitch, 54” deck..$10,495 (I) 2017 JD Z930M EFI Z‐Turn Lease Return, 60” Deck, 209 Hrs………….$9,495 (I) 2017 JD 997R Diesel Z‐Turn Lease Return, 72” Deck, 150 Hrs……….$17,395 ATV’s & Gators (I) 11’ Polaris Ranger 800XP, So� Cab Enclosure. 4 Wheel Drive………...$8,995 (I) JD 825i XUV, Power Steering, Pwr Box Li�, 4WD, Box Li�……………..$10,500 (R) JD 625i Gator, 4WD, Alloy Rims, Radial Tires, Brush Guard……………$7,900

MINNESOTA EQUIPMENT

(R) Rogers: 763‐428‐4107 (I) Isan�: 763‐444‐8873 www.MinnesotaEquipment.com

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THE LAND — FEBRUARY 23/MARCH 2, 2018 Farm Implements

035

FOR SALE:Tonutti 8 wheel V rake, good cond. $1,500.

Henry Miller, 13942 Dobbs Rd., Darlington, WI 53530 Harms Mfg. Land Rollers, Brand New, 12'-$6,500; 14'$7,000; 16'-$7,500; 24'$14,000; 32'-$17,500; 42'$19,500. Others from 8' 62'. 715-234-1993 JD 9650W, 18.4 duals, 3000 hrs, Contour Dr, $50,000; Unverferth Cart w/tarp & scale, $10,000; 2-300 bu grain wagons $1,500/ea.; 4640 PS, new 18.4 duals, $18,000; 4440 QR 18.4 duals, $18,000; Hough IH payloader, $5,000. (715)558-1850 JOHN DEERE 30 Ft 9” #726 Mulch Finisher w/ 5 Bar Drag All Good Blades (19 3/4”) Real Good. Parker #6250 Grain Wagon w/ Tarp (625 Bu) (Shedded) Real Nice. 319-347-2349 Kubota LA2254 ldr works w/ Kubota 135 tractor, brand new, $8,000. 563-379-3745

Chippewa County Farmland

AUCTION ThurSDay, march 22, 2018 • 1:00 P.m.

This Farm has a C.P.I. of 95!

Farm has a Cty Tile Outlet

PrIMe FArMLAND AUCTION

MF 285 with loader, Batco 45' conveyor, 5000lb Cat forklift, 6"x51' electric auger, 2000-18000 grain bins, 25' Wilrich digger, 28" fan & burner. 320-760-1634

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Tuesday, March 13th - 10 am Mages Auction Site 55780 Hwy 19 W, Winthrop, MN

±145 Deeded Acres ±129 Tillable Acres ±12 C.r.P. Acres AUCTION LOCATION:

Pizza Ranch • Montevideo, MN LegAL DesCrIpTION:

NE 1/4 (minus building site) of section 5; Rosewood Township; Chippewa County, MN LAND LOCATION:

Six miles north of Montevideo on Highway 29 (60th Ave.) and ¾ miles east on 30th St. NW

Auctioneer’s comment: Folks, here is a unique opportunity to add 145 acres of quality ground to your farming or investment portfolio in the heart of Chippewa County. This farm has a Crop Production Index of 95 and has a county tile outlet! The successful bidder will be granted immediate possession and can farm the land this growing season. The Anderson family have decided the time has come for a new owner or operator to enjoy the use of this land, so we hope you consider taking advantage of this opportunity by participating in this auction. Feel free to call, text, or email any questions you may have to Kristine@FladeboeLand.com or 320-212-9379.

-the Fladeboe’s

ANDersON TrUsT Kristine Fladeboe Duininck - Broker Glen Fladeboe 651-208-3262 Dale Fladeboe 320-894-9392 2015 MSAA Hall of Fame Auctioneer

Auction Terms: The successful bidder will pay down $50,000 as earnest money on auction day. The non-refundable check (made out to Fladeboe Auctions Land Company, LLC. trust account) will be required on auction day from the successful bidder. The successful bidder will enter into a non-contingent, AS-IS purchase agreement on auction day. Buyer’s premium will apply. Online bidding will be available, call for instructions. Closing will be executed on or before April 30, 2018. Upon a successful execution of the purchase agreement, the new buyer will be granted immediate possession and able to farm the land for the 2018 growing season. Announcements made auction day takes precedence over printed material. For all terms/info packet call Kristine at 320-212-9379 or email Kristine@FladeboeLand.com.

www.FladeboeLand.com Toll Free: 844-484-LAND Sellers, auctioneers and brokerage are not responsible for accidents.

Larry Mages 507-240-0030

This is a live auction with online bidding available, See magesland.com for details Tractors & Bobcat: Case IH 9130, 7651 hrs, powershift, 225 hp, 18-4/38, bar axles, bareback - can add PTO kit; ’72 Farmall 1066 Turbo, 4993 hrs w/ 4 hyd outlets, 3rd arm, 18.4x38 rear & 11.4x15 front tires, Hiniker cab w/ newer radio & seat; JD B, NF Roll-o-Matic, gas, electric start, 6’ Arts-Way belly mower, straight tin, hitch, hyd inserts, manual; Case IH 656 w/ westendorf loader w/ hyd, 3pt & PTO; Bobcat 530 gas skidsteer, 2492 hrs w/ bucket, cage & lights; Farmall Super M, for parts; Equipment & Misc Items: J D 1610 chisel plow, 19’; JD 980 field cultivator, 44 ½’ w/ 3 bar harrow; Kewanee 21’ disk, new tires; JD 212 pickup head; NH 195 manure spreader, end gate, new apron included; Balzer tandem-quad axle manure spreader; new Stout equipment includes: 66-9 brush grapple, 72-8 brush grapple, 72-3 rock bucket grapple, add-on for grapple; 48” pallet forks; Patz round bale chopper on transport; Farm King 960 snowblower, 8’, 2-auger, hyd spout; Lorenz snowblower, 9’ double auger; New Built gravity box w/ 8 ton gear; Bradford 200 bu gravity wagon; Lindsay flare box; Sudenga 8”x55’ brush auger, PTO; 12’ bin sweep w/ motor; NI 400 hay rake; Schwartz 1600 Quick Tach loader w/ snow bucket, mounted lights; 70x144” tandem axle trailer w/ fenders & drop ramps; wooden trailer; hyd 2-way cylinder; 10 – round wheel weights; 3pt quick hitch; 18.4x38 tire chains; View terms, complete list & photos at: magesland.com

Area Neighbors

Auctioneers: Ryan Froehlich 507-557-8394 & Joe Maidl 507-276-7749

Auctioneers: Matt Mages, New Ulm Lic 08-17-003; Larry Mages, Lafayette; John Goelz 507-557-8394; Joe Wersal, Winthrop; Clerk: Mages Land Co. & Auction Ser vice, LLC. Terms: No Buyer ’s Premium.

Buyers of large equipment need to bring a letter of approval from your bank. magesland.com

Tile Injector 6" tile plow pull type tile plow, used very little, w/ new Intellislope GPS controls incl. base station, also new tile stringer, possibly would sell as separate items, $43,000. (641) 590-1102 We buy Salvage Equipment Parts Available Hammell Equip., Inc. (507)867-4910

4.42” x

Tractors

036

'07 8130 JD MFD, 540 foward/1000 PTO, buddy seat, auto steer 2600/3000, $67,000. 715-572-1234 '07 MF 7490, 6735 Hrs, Dyna VT 33 MPH, 540/1000 PTO, 4 Remotes, Front & cab Suspension, $49,000. 651-3800799 '13 JD 6210R 6600 Hrs, 50K IVT Transmission, Front linkage and PTO, AutoTrac ready, TLS, Coming in, $84,500. 651-380-0799 Case 2390, 1982, New engine 200 hrs, near new 12.5-54 duals & 11-16 fronts, 3spd power shift, AC, air seat, 3 remotes, 3pt hitch, 600 gal saddle tanks, set up for 20” rows, $20,500. (641) 590-1102 NEW AND USED TRACTOR PARTS JD 10, 20, 30, 40, 50, 55, 50 Series & newer tractors, AC-all models, Large Inventory, We ship! Mark Heitman Tractor Salvage 715-673-4829 Tractor chains Y15329 16.930, 16.932, good shape, Sparta area, $300. (608)797-4264 Harvesting Equip

037

JD 18R20 cornhead 90 series row units, auger slow down kit, JD poly snouts, Headsight height control, Truesight row guidance, knife rolls, Hyd deck plates, some extra parts, $32,000.

(641) 590-1102

THE LAND — FEBRUARY 23/MARCH 2, 2018 Harvesting Equip

037 Spraying Equip

041

FOR SALE: Super B 185 con- Very nice TopAir 1100 tinuous flow dryer w/ Cal-Csprayer w/1100 gal tank, 200 u-Dri, $8,000. 320-510-0468 gal rinse tank, 4 gal hand wash tank, 60' boom w/hyd fold, new Raven 440 moniPlanting Equip 038 tor w/new elect valves, hyd driven pump, wide tires in FOR SALE: JD 7100 12R good shape, field ready, vertical fold planter, corn $8,200. (507)380-6001 & soybean units, monitor, liquid fertilizer, lift assist, shedded, good condition, Feed Seed Hay 050 $6,250/OBO. 507-567-2442 or 507-456-8139 4x5 net wrapped rd corn FOR SALE: JD 750 10 ½' nostalks $25/ea; grass $50/ea; till drill, 7 1/2” spacing, w/ 900+lbs soybean stubble dolly wheel hitch & mount$50/ea; alfalfa. Call for ined drag. Melroe 911 4-16s ventory, possible del, qty auto re-set pull type plow. discounts. (320)905-6195 Both in good condition. 612810-6558 HYDRAULIC FLAT FOLD ALFALFA, mixed hay, grass hay & feed grade wheat MARKERS. Will fit anystraw, med. square or thing, $3,500. Ray's Maround bales, delivery availchine Shop, call or text 712able. Thief River Falls, MN 297-7951 120 DAY SPECIAL Call or text LeRoy Ose: (218)689-6675 JD 7000 Corn Planter 2R, 3pt, $1,800. Fert Avail. $300/Row. 715-234-1993 MORTON OATS SEED, 98% germ, 99.7 purity, 42 lbs.

Wild oat & rain free. ExcelTillage Equip 039 lent variety for hay & seed prod. Delivery & samples '02 Great Plains Turbo Till avail. Spencer Bina Seed, Vertical Tillage unit Model Park River, ND. Call or TT 3000 Series I, center text, 701-331-9385. weight package, hydraulic wing down pressure, rolling spike tooth and basket harrow, 30' working width, $15,000. (641) 590-1102 2014 GREAT PLAINS #8326 (26 Ft 5”) Discovator/Finisher (2000A) Almost New. Mandako 46 Ft (2015) Land Roller 3” Shafts, 2500A Like New. 319-347-6138 Can Del Case IH 36R20 cultivator 36R20” cultivator set up for side dressing, 60' width, 2pt lift w/ rear assist wheels, double fold, double bar, gauge wheels, plumbed w/ variable rate orifices, $15,000. (641) 590-1102 FOR SALE: 32' IH field cultivator w/3 bar drag, $5,000/OBO. (715)410-5975 FOR SALE: White 271 Tandem disk, 24', rock flex, $5000. Call after 6 p.m.

(507)653-4548 Machinery Wanted

040

All kinds of New & Used farm equipment – disc chisels, field cults, planters, soil finishers, cornheads, feed mills, discs, balers, haybines, etc. 507-438-9782 WANTED: Case DC tractor for grinding feed. 320-3040462 or 320-589-1908 WANTED: Tractors, running or not running, salvage, repairables, prefer John Deere, will consider others, 1990 & older, must be reasonably priced. Call anytime. (507)317-6760 Spraying Equip

041

2010 JD 4730 Sprayer, 2883 hrs, fully loaded, 100' boom, 15" nozzle spacing, stainless tank, foamer, $115,000.

(507) 923-6735

Feed Seed Hay

www.thelandonline.com — “Where Farm and Family Meet” 050

If you’re having a Farm Auction, let other Farmers know it!

Upcoming Issues of THE LAND Southern MNNorthern MN Northern IA Mar. 16, 2018 Mar. 9, 2018 Mar. 30, 2018 Mar. 23, 2018 April 13, 2018 April 6, 2018 April 27, 2018 April 20, 2018 May 11, 2018

FOR SALE: 3'x3'x8' rye straw bales. 763-300-7202 OPEN Pollinated Seed Corn.

Outproduces Hybrid for Silage. $67/bushel plus shipping. 217-857-3377 SEED AND HERBICIDE SAVINGS! Add up to $50,000 to your bottom line on 500 acres of crop production. Top national corn hybrids for $113! Proven KLEENACRES herbicide programs save up to 50%.

Top yields, Kleen fields, better bottom line!

Call 320-237-7667 or WWW.KLEENACRES.COM

Deadlines are 1 week prior to publication with Holiday deadlines 1 day earlier ** Indicates Early Deadline

Wheat straw 3x4x8 tops & btms, dried out, tops caramelled, exc feed & bedding when ground. $55/ton del. Also lg rnds 1st grass & 1st alfalfa, $90-$115/ton del.

Tim 320-221-2085 Livestock

054

FOR SALE: Black Angus bulls also Hamp, York, & Hamp/Duroc boars & gilts.

320-598-3790

PAGE 29

Classified Line Ads Work!

Call 507-345-4523

PO Box 3169 • Mankato, MN 56002 Phone: 507-345-4523 or 800-657-4665 Fax: 507-345-1027 Website: www.TheLandOnline.com e-mail: theland@TheLandOnline.com Ask Your Auctioneer to Place Your Auction in The Land!

PAGE 30

www.thelandonline.com — “Where Farm and Family Meet”

THE LAND — FEBRUARY 23/MARCH 2, 2018 Dairy

Please vistit our website at www.thelandonline.com

055

Cattle

056

Reg. Holstein heifers bred w/ FOR SALE: 18 Bred Red Ansexed Semen, Due March gus Cows & 8 Open Grade and April. 715-286-2905 Black Angus cows sired from bulls out of Eli and Dan Stassens herd in MarWANTED TO BUY: Dairy shall, MN. In Oconto, WI. heifers and cows. 320-235920-604-1942 2664 FOR SALE: Black Angus 2 WANTED: Holstein bred yr old bull w/ genetics for heifers.

Short-breds to grass fed. 612-308-1902 springers. Call 715-897-1544 FOR SALE: Registered Angus bulls, 1-3 yr old, 4-2 yr olds, good quality & size, AI Cattle 056 sired, also bred heifers due in April. Miller Angus, 150 Holstein Steers, approx Kasson, MN (507)634-4535 350 lbs, $1.30/lb, 175 Holstein Steers, 250-275 lbs, HOLSTEIN STEERS: $1.40/lb, all vaccinated dehorned, knife cut, delivery Groups ranging from 250-950 lbs, vaccination program, avail. 715-613-2072 can sell & deliver any number. Jeff Twardowski (320) Bred heifers 14 Simmental & 732-6259 Sim-Angus Bred AI to easy Red Angus & Black Angus calving Angus bulls, registered bulls for sale.

Schiefelbein effective & Most w/700-800# weaning ABS 3F Epic for March weight. Care included in calving. All Polled Black price until May 1st. Meadoexcellent quality. Also 3 West Farms. (715)664-8854 bred cows & 6 Black Polled excellent quality breeding bulls. 50 yrs of AI breeding. Registered Texas Longhorn breeding stock, cows, Gerald Polzin Cokato. 320heifers or roping stock, top 286-5805 blood lines. 507-235-3467 FOR SALE OR LEASE WANT TO BUY: Butcher REGISTERED BLACK cows, bulls, fats & walkable ANGUS Bulls, 2 year old & cripples; also horses, yearlings; bred heifers, sheep & goats. 320-235-2664 calving ease, club calves & balance performance. Al 060 sired. In herd improvement Sheep program. J.W. Riverview Angus Farm Glencoe, MN Baby doll sheep, bred ewes, rams, butcher lambs. Fall 55336 Conklin Dealer 320Creek, WI. 715-877-3222 864-4625

Wanted: Drivers/Farmers!

Farmers - if you’re looking for a great seasonal opportunity with Medical Insurance, contact us. We understand farming!

CDL with tanker endorsement, Hazmat and TWIC cards.

The loads pay on percentage of the total revenue starting at 25% – with standard runs this would be $71,400.00 per year.

Benefits: Full medical and disability insurance.

Sign on bonus of $5,000.00 The runs are daily and home nightly.

We are based out of Rosemount, MN by Pine Bend Terminal.

Please send resume to: info@jrproductionacres.com For more information, please leave a message at (507) 867-4552!

Swine

065

Compart's total program features superior boars & open gilts documented by BLUP technology. Duroc, York, Landrace & F1 lines.

Terminal boars offer leanness, muscle, growth. Maternal gilts & boars are productive, lean, durable.

All are stress free & PRRS free. Semen also available through Elite Genes A.I. Make 'em Grow! Comparts Boar Store, INC. Toll Free: 877-441-2627 Pets & Supplies

070

FOR SALE: AKC Lab puppies, dews, shots and full registration. Born 1/16/18 Ready to go early March. A few Yellows available and 1 Black female. Great for field or home. $600/female or $500/male. 320-761-0202 FOR SALE: Registered Border Collie puppies, about a month old, vaccinated & dewormed, be ready about middle of March. Parents are working, best friend.

651-206-8307 Purebred English Shepherd puppies. Old Bear breeding. 608-565-2633 Trucks & Trailers

084

'91 IH 8100 grain truck, Cummins L10, 9spd, white cab, blue 20' Scott hoist & box w/ tarp, steerable 3rd axle, solid, clean, good tires, drives nice, $30,000. Retiring from farming. 507-381-7097

THE LAND — FEBRUARY 23/MARCH 2, 2018 Miscellaneous

090

Miscellaneous

090

Cash paid for antique Harley PARMA DRAINAGE Davidson, Indian or other PUMPS New pumps & motorcycles and related parts on hand. Call Minparts from 1900 thru 1970. nesota's largest distributor Any condition. Midwest colHJ Olson & Company 320lector will pick up any974-8990 Cell – 320-212-5336 where. Phone 309-645-4623 Looking for 1000 gallon LP tank. Call 715-223-0445 One call does it all!

With one phone call, you can place your classified ad in The Land, Farm News, AND The Country Today.

Call The Land for more info @ 507-345-4523 • 800-6574665.

WANT MORE READERS TO SEE YOUR AD??

Expand your coverage area!

The Land has teamed up with Farm News, and The Country Today so you can do just that! Place a classified ad in The Land and have the option of placing it in these papers as well.

More readers = better results! Call The Land for more information. 507-3454523 • 800-657-4665

Miscellaneous

www.thelandonline.com — “Where Farm and Family Meet” 090

REINKE IRRIGATION Sales & Service New & Used For your irrigation needs 888-830-7757 or 507-276-2073

Miscellaneous

090

Winpower Sales & Service Reliable Power Solutions Since 1925 PTO & automatic Emergency Electric Generators. New & Used Rich Opsata-Distributor 800-343-9376

PAGE 31

ADVERTISING NOTICE: Please check your ad the first week it runs. We make every effort to avoid errors by checking all copy, but sometimes errors are missed. Therefore, we ask that you review your ad for correctness. If you find a mistake, please call (507) 345-4523 immediately so that the error can be corrected. We regret that we cannot be responsible for more than one week’s insertion if the error is not called to our attention. We cannot be liable for an amount greater than the cost of the ad. THE LAND has the right to edit, reject or properly classify any ad. Each classified line ad is separately copyrighted to THE LAND. Reproduction without permission is strictly prohibited.

ADVERTISER LISTING Ag Spray Equipment .............................................. 12 Agri-Systems ........................................................... 9 Ahrens Bin Sales .................................................... 25 American Angus ..................................................... 28 Anderson Seeds ........................................................ 4 Bobcat ................................................................... 12 Courtland Waste ..................................................... 13 Dahl Farm Supply .................................................. 21 Dan Pike Clerking .................................................. 26 Diers Ag & Trailer Sales ........................................ 15 Doda USA ............................................................... 5 Dow Sonic Herbicide ............................................... 3 Fladeboe Auction ................................................... 28 Freudenthal Dairy & Mfg ....................................... 18 Gehl Company ....................................................... 20 Greenwald Farm Center .......................................... 31 Homestead Sales .................................................... 28 Houghton's Auction ................................................ 26 JR Production Acres ............................................... 30 K-Bid Online Auctions ........................................... 14 Kannegiesser Truck Sales ......................................... 8 Keith Bode ............................................................. 27 Larson Implement .............................................26, 30 Mages Auction ..................................................25, 28 Manders Diesel ........................................................ 6 Minnesota Equipment ............................................. 27 Minnwest Bank ........................................................ 7 North American Farm & Power Show ...................... 11 Pruess Elevator ...................................................... 29 Schweiss ................................................................ 30 SI Feeder/Schoessow .............................................. 19 Smiths Mill Implement ........................................... 31 Steffes Group ........................................ 24, 25, 27, 29 Wieman Land & Auction .........................................24

507-345-4523 • 800-657-4665 PO Box 3169, Mankato, MN 56001 www.thelandonline.com

PAGE 32

www.thelandonline.com — “Where Farm and Family Meet”

THE LAND — FEBRUARY 23/MARCH 2, 2018

This week’s Back Roads is the work of The Land Associate Editor Marie Wood.

Photos by Audrey Gatchell.

Smell the flowers

V

isitors stroll through an English-style glass conservatory. They are amazed by a wall of orchids. They delight in a riot of spring bulbs in bloom. They breathe deeply and experience the scents, colors and textures of flowering gardens.

The Minnesota Landscape Arboretum presents “Fragrances of Spring, Essence of Paradise,” a spring flower show inside the Oswald Visitor Center and Snyder Building, through February.

The show is a “fragrant journey of discovery” in which garden vignettes are classified by scents.

Sculptures from Minnesota’s Paul Granlund grace the displays.

Always changing, a visit to the Arboretum is filled with wonder and surprising beauty. Spring is coming and the outdoor gardens will soon be awakening.

The University of Minnesota Landscape

Chaska, Minn.

Arboretum is located at 3675 Arboretum Drive, Chaska. Admission is $15 for visitors age 16 and older, free for children age 15 and younger.

Visitors are admitted free on the third Mondays of the month. Visitor center hours are 8 a.m. to 4:30 p.m. Monday to Saturday. Sunday hours are 10 a.m.-4:30 p.m. The Arboretum is open seven days a week all year-long, closed only on Thanksgiving and Christmas.

For exhibits, maps, updates and other information, visit www.arboretum.umn.edu. v

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© 2018

March 2, 2018 NORTHERN EDITION

(800) 657-4665 www.TheLandOnline.com theland@TheLandOnline.com P.O. Box 3169, Mankato, MN 56002

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THE LAND, Advertising Supplement

© 2018

March 2, 2018 NORTHERN EDITION

(800) 657-4665 www.TheLandOnline.com theland@TheLandOnline.com P.O. Box 3169, Mankato, MN 56002