Calendar of Events

By DICK HAGEN

The Land Staff Writer Emeritus

NORTHWOOD, Iowa — Started by his dad in 1982, the Northwood, Iowa Agri-Sales and Building Supply is now managed by his 38-year-old son, Tom Low. Tom graduated from Northwood High School; followed by two years at North Iowa Area Community College on the east edge of Mason City.

Says Low, “I got here immediately after completing my two-year program at NIAC — although I spent lots of time working with my dad during my high school years.”

And that’s not surprising since a major function of his firm is selling grain bins, dryers and a bunch more. “Anything to do with farming — except tractors and major farm equipment,” Low said, “augers, tillage gear, and it seems a growing assortment of new requests. The continually-growing diversity of today’s agriculture is amazing, be that in crop production or livestock.”

The top-selling grain bin for him these days is GSI made in Illinois. His assessment of 2022 sales? “Pretty good so far. And now some area interest farmers for 2023 as well. Farmers tell me their crops did surprisingly good this year; plus corn and soybeans prices are mostly okay … so us guys working with farmers are optimistic too,” says Low.

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It seems everything in agriculture keeps expanding … farm sizes, tractor power, harvesting equipment — and grain bins too. “Back when I was younger, it was anywhere from 36 to 42-foot bins,” Low recalled. “Now those are tiny bins. Today, bins from 54 to 72-feet wide are now common. Now we’re talking anywhere from 150,000 bushel to 300,000 bushel bins.” Yep, you see some real whopping big structures on farms these days.

Low doesn’t erect bins he sells. His dad had taught him years earlier that process goes to someone who has the manpower. “Harvey Patterson just down the road is my bin man,” said Low. “With a good crew its usually a couple weeks once the concrete is poured.“

Low admitted to a few hang-ups in the supply chain for a highly diversified contractor. “It was sort of a battle for a few weeks,” he said. “The biggest hang-up was when we weren’t getting our new bins delivered to us. But as of now (mid-October was my visit) we’re getting mostly caught up and back to normal again. And that’s almost a stretch; because anymore, what’s normal? This U. S. economy needs some fixing it appears to me … and I think many others too.”

A normal work schedule for his crew is 7 a.m. until 5 p.m. “But no set schedule during the fall harvest season … even a few seven-day weeks then,” confessed Low. “And quitting time each day is like whenever we need to shut down; and many days that’s way beyond 5 p.m.”

Low is a healthy and extremely energetic young guy. No need for fitness and conditioning programs needed in his daily ‘hands on’ working environment.

And how does he plan ahead on how many new bins for the next season? He chuckled, “I’m still trying to figure that one out. You don’t want to turn down work; but perhaps like some farmers, usually some uncertainties as I gear up for the new season. One thing I learned from my dad was, ‘Sure, do some planning and have enough help to get the work done; but always be ready to adjust as needed.’”

Low admits his biggest challenge as his firm continues to grow is ever-evolving technology. “Perhaps the growing amount of computer technology needed to make everything work as needed in this business,” he said. “I’m not real fast on computers; but can see I’ve got to pick up some abilities just to keep the job projects on track for me and my crew. I was taught old school … if you can’t fix it with a hammer, you ain’t fixing it,” he chuckled.

And Low admits he himself has got to become more proficient with computer-aided design and drafting technologies. “This would speed considerably the time I’m now taking in drafting out layouts of new bins for customers.”

Low is confident about the future of American agriculture. “Lots of hard-working farmers out there,” he said. “Even with pricing on all their inputs going through the roof they seem to figure it out … and most likely they’ve also wrapped up their 2023 cropping plans — including advance purchases of fuels and seeds.”

“I work up a plan for each season as best I can. But in the fall, I suggest to my regular farm customers that they call and get on the list for when we can attend to their needs. Some days it’s a short list, some days its four pages.”

Low has two full time employees … and sometimes more if a new grain bin project is lagging. He also has an ‘old timer’ — Kenny Quam, now in his 80s, who goes out doing dryer work. “Kenny’s a brilliant guy,” Low said.

Low’s wife is Brittany and they have sons Leygion, 8, and Drew, age 3. College ahead for these two young guys? Or taking over with Dad eventually? Low quickly countered, “I would hope they would go to college; but anymore, trade school seems a better turn. Good salaries and lots of specially-trained guys needed too. That’s the training I got at NIAC which certainly helped when I came home.” v

Calendar of Events

Jan. 11, 18, 25, Feb. 1, 8, 15, 22, March 1, 8, 15, 22,

29 — Strategic Farming: Let’s Talk Crops — Online — This live, online program will provide up-to-date, research-based information to help optimize your crop management strategies for 2023. For more details, please visit https://z.umn.edu/strategic-farming.

Jan. 11: Forecast for the season – Weather, economics & supply chains

Jan. 18: What’s bugging my corn? An outlook on corn rootworm and more

Jan. 25: Climate factors and nitrogen management

Feb. 1: Semi-Dwarf corn & SCN breeding efforts

Feb. 8: Are biologicals in corn & soybean logical?

Feb. 15: Weed management in the era of increasing herbicide resistance

Feb. 22: “Can I take an N credit?” and other cover crop FAQs

March 1: Expanding your rotation with small grains

March 8: Corn Tar Spot: Distribution, development, and management

March 15: Alfalfa weevil and other alfalfa management challenges

March 22: Soybean Pests – What’s up with the new and old…are they a big deal?

March 29: Get your planters ready

Pigweeds are a widespread genus of plants (Amaranthus) comprised of roughly 75 species across six continents. Pigweeds are herbaceous annuals or short-lived perennials which can produce hundreds of thousands of seeds. Some pigweed species are used for ornamental reasons or food, while others are considered noxious weeds.

Pigweeds, such as loves lies bleeding (Amaranthus caudatus), are grown as an ornamental in garden beds or along borders. They have a drooping flowering head which is typically a deep red or crimson purple color. There are many other varieties of pigweeds grown for their colors and are also used in bouquets and other arrangements. Other varieties, like red garnet (A. hybridus) and hot biscuits (A. cruentus), can be used for their colors; and the leaves can be eaten in a soup or cooked like collards. The seeds can also be used like a quinoa or ground up into flour and used for baking. Ancient Aztec people were known to cultivate amaranth for its grain.

There are many different pigweeds in Minnesota and Iowa — many of which are not detrimental to the environment. However, there is a concern that a few pigweed species are detrimental to row crops and can outcompete corn, soybean, sugar beets, and many other types of crops.

Palmer amaranth (A. palmeri) is a pigweed known as a noxious weed in many Midwestern states because it isn’t native to our region and is very competitive with crops. This plant can grow 2 to 3 inches a day and commonly reaches heights of 6 to 8 feet.

This pigweed is known to develop resistance to multiple classes of herbicides and their different modes of action. If left unchecked, Palmer plants can overtake a corn or soybean field in as little as a year and greatly increase weed management and other production costs while decreasing yields. There Palmer amaranth are reports that Palmer amaranth has caused yield losses up to 91 percent in corn and 79 percent in soybeans.

If you suspect that you have Palmer amaranth on your land, more information on the MDA webpage at www. mda.state.mn.us/plants-insects/palmer-amaranth. There are resources to help identify and report it. A public map shows where Palmer amaranth has been found in the state.

Similar to Palmer amaranth, waterhemp (A. tuberculatus) is an aggressive pigweed species that has become very problematic because it can become herbicide resistant and overtake crop fields in a short period of time. There are many biotypes of waterhemp, which also makes it difficult to control.

If you have questions or concerns about waterhemp, contact your local University of Minnesota Crop Educator who can direct you to more specific resources.

This article was submitted by Shane Blair, Minnesota Department of Agriculture. v

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Grain Outlook Corn exports thirdhighest of the year

The following marketing analysis is for the week ending Dec. 16.

CORN — Happy Holidays! Corn has gone into the holiday doldrums with trading volume hitting the lowest of the year at mid-week. Corn prices rallied when traders returned from the weekend on slow loadings from the Black Sea after missile attacks on Ukraine. March corn has set up a range from $6.35 to $6.60 per bushel.

The Federal Reserve raised interest rates as expected by one-half percent to a range of 4.25 to 4.5 percent. In post-meeting comments, Federal Reserve Chair Powell indicated they were not backing down from their 2 percent inflation goal. Fed officials project the federal funds rate will increase to 5.1 percent by the end of 2023. PHYLLIS NYSTROM CHS Hedging inC. St. Paul

Argentina has received some rainfall recently, but timely rains are still needed. The Rosario Grain Exchange this week showed Argentina’s corn planting at 63 percent complete vs. 66 percent last year and 68 percent on average. They left the corn production outlook at 56 million metric tons vs. the U.S. Department of Agriculture at 55 mmt.

Southern Brazil’s dryness is attracting attention. Their corn planting is complete, and rains have been limited. In Ukraine, a grain trade union has asked the government to prioritize electricity to grain ports to prevent grain quality from deteriorating.

Weekly export sales were better than anticipated at 37.7 million bushels and the third-highest of the marketing year! Total commitments of 787.5 million bushels remain 48 percent behind last year’s pace. We need to average 32.5 million bushels of sales per week to hit the USDA’s 2.075 billion bushel outlook. The total commitment number is the lowest for this time of year in the last three years. China has just 1.3 mmt of unshipped bushels on the books compared to 10.5 mmt last year on this date. Based on where we are, traders will likely be looking for additional cuts to the export line on future USDA reports.

The weekly ethanol report showed ethanol production fell 16,000 barrels per day to 1.06 million bpd. This was above the 1.025 million bpd needed every week to hit the USDA’s 5.275 billion bushels corn for ethanol usage forecast. Ethanol stocks were at a 35-week high at 24.4 million barrels, up 1.15 million barrels. This was a record high stocks number for this week. Net margins dropped 6 cents to a negative

Cash Grain Markets

corn/change* soybeans/change*

Stewartville $6.23 +.19 $14.34 +.12 Edgerton $6.72 +.07 $14.64 +.24 Jackson NR NR

Hope $6.46 +.05 $14.36 +.14 Cannon Falls $6.18 +.15 $14.34 +.24 Sleepy Eye $6.47 +.10 $14.55 +.05 St. Cloud $6.17 +.15 $14.54 +.19 Madison $6.38 +.15 $14.74 +.24 Redwood Falls $6.59 +.17 $14.74 +.19 Fergus Falls $6.26 +.14 $14.50 +.30 Morris $6.37 +.15 $14.73 +.28 Tracy $6.57 +.18 $14.63 +.18 Average: $6.40 $14.55 Year Ago Average: $5.79 $12.57

Grain prices are effective cash close on Dec. 20. *Cash grain price change represents a two-week period.

5 cents per gallon. Gasoline demand was down to a 22-week low at 8.255 million bpd. Gasoline demand over the last four weeks is down 9 percent from a year ago.

Outside markets have been interesting. The U.S. dollar plunged to its lowest since June when the Consumer Price Index came in better than expected at 7.1 percent higher than a year ago vs. expectations for an increase to 7.3 percent. However, the Federal Reserve interest rate announcement rallied the dollar. The war in Ukraine is seeing increased missile attacks by Russia focusing on Ukraine’s power grid. Every time it goes down, it takes longer to make repairs to restore power.

Outlook: Corn is fighting declining ethanol margins, increasing ending stock ideas, and weak demand as we head into the end of the year. South American weather will be a focal point for price direction with dryness in both Argentina and southern Brazil concerning.

March corn may be setting up for a short-term $6.35 to $6.60 per bushel range. The market is looking for a headline and it may have to come from the macro side.

For the week, March corn rallied 9 cents to close at $6.53, July was 7.5 cents higher at $6.48.25, and December 2023 gained 4.5 cents at $5.97.5 per bushel.

The CME will have normal trading hours on Dec. 23 and not reopen until Dec. 27 at 8:30 a.m.

SOYBEANS — Soybeans began the week on a sour note after better-than-expected weekend rain in Argentina. However, as the week progressed, Argentina’s new forecasts turned drier through the end of the month. Southern Brazil is also leaning drier while most of the rest of the country is looking fine. Argentina’s soybean planting is 62 percent complete vs. 68 percent last year and 70 percent on average. Brazil’s soybean planting is 95 percent complete vs. 97 percent last year and 95 percent on average. Soybean prices got help from recoveries in both meal and soyoil markets.

The Rosario Grain Exchange left their soybean production outlook at 48 mmt. The USDA on the December report was at 49.5 mmt. Argentine farmers have sold an estimated 76 percent of last year’s 44 mmt soybean crop. Last year they had sold 73 percent of their old crop by this time. They are in their second go-around with the special soybean exchange rate which lasts through the end of the year.

China’s National Statistics Bureau increased its 2022 soybean production estimate from 19.5 mmt to 20.3 mmt. The USDA is at 18.4 mmt. China’s hog crush margins are weak and Covid cases are increasing, leading to weak soy demand. Their corn production rose from 275.3 mmt to 277.2 mmt. USDA is at 282.3 mmt.

Weekly export sales were huge at 108.2 million bushels and the second-highest of the marketing year. Of this week’s total, 1.24 mmt were to China bringing their total purchases for the year to 24.7 mmt vs. 22.3 mmt last year by this time. Total commitments stand at 1.537 billion bushels and are now 4 percent higher than last year. We need to average just 13.9 million bushels of sales per week to reach the USDA’s 2.045 billion bushel export target. For the last five years, soybean sales from December through August have averaged 18.3 million bushels per week. Based on this history, you might expect the yearly export projection may be raised, but with Brazil’s record bean crop forecast and our uncompetitiveness, it may be too early for that assumption.

The November National Oilseed Processors Association Crush was disappointing at 179.184 million bushels vs. the 181.5 million expected. Soyoil stocks were 1.630 billion pounds compared to the 1.619 billion pounds estimated. Soyoil stocks were the second-highest of the last 10 years.

Outlook: The markets feel like they began holiday mode earlier than usual this year. Farmer selling has been limited since the sharp early week plunge despite prices working their way over halfway back from this week’s low. South American weather will dominate the news as we head into Christmas and option expiration.

For the week, January soybeans fell 3.75 cents to close at $14.80, July was 6.75 cents lower at $14.89.5, and November 2023 was down 9.25 cents at $13.89.25 per bushel.

January options expire on Dec. 23 and the first notice day for January futures is Dec. 30 with longs getting reported after the close on Dec. 29.

Weekly price changes in December wheat for the week ended Dec. 16: Chicago wheat jumped 19.25 cents higher to close at $7.53.5, Kansas City was 11 cents higher at $8.44, and Minneapolis was 8 cents higher at $9.09.5 per bushel. v