Andy McNamara Memorial Scholarship

This Scholarship is in memory of Andrew “Andy” McNamara, a Renville County farm boy who had the desire to be involved in production agriculture. He thoroughly enjoyed the outdoors and was concerned for the environment. Andy is missed by all those who knew his real passions. 

There will be awards of (1) $2000.00 Scholarship and (1) $1000.00 Scholarship to be used at the college of the applicants choice.

Requirements:

  • Member/Participant in BOLD School FFA
  • Passion for Agriculture and/or Rural Communities
  • Desire to further your education
  • Ability to develop leadership skills
  • Available to BOLD School SeniorApplication Due by April 30th

Important Crop Insurance Dates

Selection of Coverage Levels and Unit Structure Sales Closing Date: March 15, 2013

EARLY PLANT DATE
Corn = April 11
Sugar Beets = April 11
Soybeans = April 21

LATE PLANT DATE
Corn = May 31
Sugar Beets = May 31
Soybeans = June 10

(ASK YOUR CIS: DATE VARIES BY STATE AND/OR COUNTY)

 

Be Confident in your 2013 Profitability!

Empty Grain Bins but Not Empty Pockets
If you are like me, you probably experience a degree of natural fear when exposed to heights, especially if there is little or no protection. After more than 30 years on the farm, I look no farther than the grain bin for this glaring example. In the fall, as harvest preparation is occurring, the one job that I hate doing is opening up the lids on the grain bins in preparation of filling them. Grain bins on our family farm have always been used to gauge how successful the crop year was. The hope was always to have more grain than storage because that would be a sign that the year was a success.

Over the last 2 years, we have begun to look at the grain bins in a different manner. With the challenges that have been faced in many regions, sub-par crops have led to empty grain bins. While the Corn Belt has produced 3 sub-par crops relative to the trend, on-farm incomes have continued to increase; even in the face of having grain bins that were short from being full. The one key component in this has been risk
management strategies that growers have utilized to protect revenue on their farms.

There are many ways that your crop insurance policies can work for you. The key in getting policies to work for you and your farm starts with how you look at using them. Most think about crop insurance only as a tool to protect income if the crop is damaged. We saw a significant need for crop insurance to serve in that role this past season. Some also rely on crop insurance as a way to protect from fluctuating market prices. How do you work marketing into this? Crop insurance allows you to market your crop to your level of coverage and take advantage of pricing opportunities that come before the bins are filled. The key component in doing this is to know your long term break evens. This number includes not only production costs, but short and long term debt, family living expenses, and profit. When you know your break even with profit built in at the levels you have insured your crop, it’s easy to be proactive with your marketing plan and take the emotion out of pricing your bushels.
In 2013, the greatest return on investment could very well be your election of policies for your farm. The decisions are not easy and must be tailored to your operation as they can equate to hundreds of thousands of dollars, both gained and lost. Do you have a risk management strategy for this growing season and are you going to use the tools before you fill your grain bins for 2013 prior to planting the crop? With the proper use of MPCI (Multi-Peril Crop Insurance) and additional specialty products, this year will be a great year for your operation. As MPCI is about to set its base revenue for the season, we will most likely have the opportunity to guarantee a break-even, or possibly a

marginal profit for your operation. In our diagram we picture a grain bin. If estimating break-even to be around $850/ac, with an average APH yield of 180bu/ac, the marketing break-even would be $4.72/bu. Dec. 2013 corn is trading around $5.75/bu., over a dollar per bushel profitability. What level of insurance are you thinking of taking to guarantee yourself a profitable year?
Historically, we purchase MPCI in March and do not think about it until after harvest and say to ourselves, “I’m sure glad we didn’t need that product again.” When I look at the last 20 years, the all-time high spring price was $6.01 in 2011, followed by $5.68 in 2012. Assuming our markets hold in the $5.75 range, we are able to assure a profit for your farm. In these same 20 years, 70% of the time the market price is lower by fall. With the revenue protection product, we are guaranteed a set revenue price so our down side risk is minimized.
The crop insurance deadline is fast approaching, with only a little over a month before the March 15th deadline. Farmers across the Corn Belt are still dealing with the emotions from last year’s harvest and growing season. We know that 2012 was a tough year, one that we can hopefully reminisce about in the future and not see repeated. At Corn Capital Innovations, our main concern for farmers is this: get your crop insurance set up so that you know what your bottom line protection is. Also, make sure you know what your protected bushels per acre are, and then you will know what your guarantees are. This will all result in the fact that if or when there is a market rally, you can act on it and not have to worry about overselling your guaranteed bushels versus your yield expectations.
Here at CCI, we take a look at the revenue products that are available and slot them into a policy selection matrix to make sure that we’re making the best recommendation for your operation. The policy section matrix is a tool developed by Water Street Solutions to provide the best risk management plan for your operation. We do realize that each operation is different in terms of complexity. That is why we are excited to sit down with each operation and determine an individualized risk management plan that will access what unit structure to take, what coverage levels to take, and what other products are available and should be considered for your overall risk.

Farming in an Evolving Environment

It would be fair to say that we, as humans, over the course of our time on this planet have seen numerous shifts and changes in our environment. While some of these changes have led to the extinction of species, both animal and plant, we, as humans, have been able to adapt very well. In this article, I will refer to some organisms and plants as invasive. However, this may be the incorrect definition by term. An invasive species is; non-native to the ecosystem under consideration and whose introduction causes or is likely to cause economic or environmental harm. I contacted the USDA, as well as the DNR, on the definition with a key question that neither agency could define. What if you have species that are native that no longer die or can be managed with chemistries or technologies that had previously controlled them? Maybe we should just call them super bugs and super plants. Either way, they are definitely NOT super to have in your fields!

Later in this article, I will address some of the invasive species that are causing economic and environmental harm and continue to proliferate in our fields. First, I will present a case study of how profound invasive species are in our environment. To do this, I look no further than one of Minnesota’s most precious resources, water. The state of Minnesota spends over $2 million annually just on the education and prevention of invasive species. Several laws have been put into place to prevent the introduction of both new and existing invasive species from spreading. Current legislation went as far as having to drain all water from your boat and minnow pails before leaving the lake. If you want to keep your bait; by law, you have to have fresh water in your vehicle and exchange the water out. Beyond that, you are also required to have no weeds on or attached to your boat or trailer. If you fail to do this, the possible result in fines could be in excess of one hundred dollars. The DNR will tell you that their campaign against invasive species is 100% preventative. Once invasive species are established, they are almost all but impossible to rid from the lakes and water ways.

The unique battle we face in fields is that we can rid these species once we have them. We can do this through a zero tolerance seed goal, which is physically removing these weeds before they go to seed. Economically, this is the most expensive and labor intensive, but it is the only way once invasive weeds are established. If you have fields that do not have populations of invasive weeds, you still need to continually adapt your spray chemistries and practices that are best suited or effective for elimination of these weeds. After all, these seeds can travel beyond fence lines as the winds blow and the water runs. Again, you cannot control what your neighbors are doing to manage these pests; you can only control how you mitigate the spread of them on your ground.

Our culture does not reward acts of prevention. One can look to our history books for this where there is very little mention of people who have been praised for the prevention of anything. We reward those in both history and our lives who cure or help solve the issues (once they are identified as problematic) that are presented. History isn’t written for the diplomats that have prevented war, it is written for the generals and nations who won the war. Nobody thanks the doctor that has told them for 50 years to eat healthy and exercise regularly; they thank the doctor that cures their ills.
With the wide spread adaptation of technology in farming over the last 20 years, most, if not all technologies have made our lives more efficient in terms of managing a crop. If you have a weed issue, there was a chemical to kill it. If you have a bug problem, there was technology put into the plant to kill it. These technologies have been a simple solution in all but eliminating issues in fields that have historically been a problem. I have observed this for myself on our family’s farm in which the middle of the section always
had a persistent canadian thistle patch. The patch had been there for as long as my father could remember.
Supposedly, my Grandfather met my Grandmother in that very patch via a shared line fence in which it was a common ritual to migrate to every year with a sharp hoe in hand to attempt to eliminate the weeds. While my Grandparents never eliminated the patch, it was always kept in check while it did not cause
an economic hardship for the ground. It did cause many blisters on the hands in the hot
summer days. That thistle patch is now history……….maybe?

While the thistles are gone, there are new challenges. Weeds like giant ragweed
and water hemp are becoming harder to kill. It is estimated that in the 2012 growing
season, 5 – 95% of all fields in Minnesota’s corn growing region have glyphosate
resistant water hemp and giant ragweed! In the southern half of the state, these percentages
increase to 70-95% of fields. As you move north, weeds like kochia and common
ragweed have similar percentages in fields. Corn Root Worn beetles, both Northern and
Western; have become more resilient to technologies and management practices. These
pests are giving corn a one-two punch. It is very important to look at managing these
in both our corn and bean fields, as they are migrating to the beans to lay eggs more
than people want to recognize. These are the invasive species that are adapting to our
environment and management practices at an alarming rate.

We must look to history to recognize that simple is what got us to where we are at in
dealing with these resistant pests and weeds, but simple will not get us out of it. Looking
forward, we must avoid these invasive species (resistance) at all costs because it
will come at the expense of lost revenue in the future. It is, and will always be better to
spend the money to prevent these instances from occurring in your fields than to bare
the economic hardship of trying to eliminate them once they are established.

Looking toward the future, you must ask yourself if you are willing to implement preventative
measures to assure these species do not proliferate in your fields. Will you be
willing to walk your fields 7-10 days after herbicide application to verify an effective
kill? Will you stop the combine before processing the seeds of these resistant weeds?
Will you pull roots and soak them to identify if you have rootworm in each of your
fields to better manage for years to come?
“An ounce of prevention is worth a pound of cure” – Benjamin Franklin

What Have You Been Catching? Farm Fishing Report

This past weekend provided slow fishing but was able to fish with a few good friends!  The recent snow storms are making it tough to get around on the lakes with a permanent house.

What have you been catching?  Tell us in the comments below!

-Jim

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