AgDay Daily Recap -Sept 19, 2016

April 22, 2016 02:57 AM
 

HEADLINES

TODAY ON AGDAY, FARM LENDERS RAISE FLAGS ON A SPUTTERING AG ECONOMY.

IN AGRIBUSINESS... SOUTH AMERICAN ACRES HOLD HOPE FOR A BEAN PRICE BOUNCE. NO QUESTION WE’RE GOING TO BE READY. MACHINERY PETE LOOKS AT AUCTION PRICES FOR LOW HOUR PRE EMISSION TRACTORS. AND CUT FLOWER CHALLENGES IN THE LONE STAR STATE.

 

LOAN REJECTIONS

GOOD MORNING I'M CLINTON GRIFFITHS. LOAN REJECTIONS AND RESTRUCTURING ARE ON THE RISE AS FARM INCOMES SPUTTER IN THE WANING MONTHS OF 2016.

THAT'S ACCORDING TO THE LATEST RURAL MAINSTREET INDEX FROM CREIGHTON UNIVERSITY.  THE MONTHLY SURVEY OF BANKERS IN A RURAL 10 STATE REGION SHOWS THE SEPTEMBER INDEX AT ITS 13TH CONSECUTIVE MONTH BELOW GROWTH NEUTRAL. IT FELL TO 37---50 IS CONSIDERED NEUTRAL. ONE IN FIVE BANKERS SAY THEY'RE INCREASING THEIR LOAN REJECTION RATES BECAUSE OF WEAK FARM INCOMES. AND FOUR OUT OF FIVE SAY THEY'RE NOW RESTRUCTURING AG LOANS BOTH THE EQUIPMENT INDUSTRY AND FARM AND RANCH LAND PRICES CONTINUE IN NEGATIVE TERRITORY. BANKS CEO'S SAY THEY'RE WORRIED REGULATORS WON'T PROVIDE ENOUGH BREATHING ROOM FOR BANKS TO WEATHER PLUMMETING FARM INCOMES. TYNE MORGAN TAKES US TO SOUTHERN ILLINOIS TO HEAR FIRST-HAND FROM ONE AG BANKER, WHY DESPITE THE HEADWINDS, HE'S STILL BULLISH ON

AGRICULTURE. WENT TO COLLEGE, GOT MY DEGREE, AND CAME BACK.BRICE ALLARD MARKS THE 5TH GENERATION ON THIS SOUTHERN ILLINOIS FARM. WORKING ALONG SIDE HIS DAD WAYDE FOR 15 YEARS, 2016 IS PROVING TO BE A CHALLENGE. IT'S BEEN DIFFICULT. 20016, HAS BEEN LIKE EVERY YEAR, IT'S BEEN A CHALLENGE BUT IT'S BEEN UNIQUE IN ITS OWN WAY.

YOU GO BACK INTO TYHE 2012, 2013, WE JUST HAD DIFFERENT TYPES OF CHALLENGES

ALAN HOSKINS IS ALLARD'S BANKER. HE SAYS WHILE FINANCES MAY LOOK GRIM

FOR SOME, IT'S THE PRICE OF HAVING A GOOD CROP, THE OPPOSITE OF WHAT MANY SAW IN

2012. I WAS DEPRESSED A LOT IN 12, TO SEE THE CROP BE SHOULDER TALL WITH NO EARS ON IT>> WAYDE SAYS THAT YEAR WAS HARDER TO STOMACH THAN A YEAR LIKE 2016.

BUT THE REALITY INCLUDES FADING CROP PRIES, WHILE INPUT COSTS REMAIN

MORE FIXED. 2017 IF WE DON'T SEE AN ADJUSTMENT IN INPUTS, WE DON'T SEE AN ADJUSTMENT IN CASH RENTS AS A WHOLE AND WE SEE COMMODITY PRICES STAY FLAT WITH WHERE IT APPEARS THEY'RE GOING TO BE, THERE'S NO QUESTION THERE'S GOING TO BE RED INK.HOSKINS SAYS IT VARIES FARM TO FARM , BUT OPERATING IN THE RED COULD

STING FOR SOME BUT I CERTAINLY DON'T THINK 50 TO 100 DOLLARS AN ACRE IS OUT OF THE QUESTIONTHE LATEST RURAL MAINSTREET INDEX, WHICH SURVEYS RURAL BANKERS FROM

ACROSS THE MIDWEST, SHOWS ONE IN FIVE CROP FARMERS, OR NEARLY 20 (19.5) PERCENT, TO SUFFER NEGATIVE CASH FLOWS IN 2016.. HOSKINS SAYS THOSE ARE SOBERING NUMEBNRS, AND PRECISELY WHY INPUTS WILL HAVE TO DROP AS A WHOLE, I WOULD THINK WE WOULD LIEK TO SEE, ADN WE HOPE TO SEE, MAYBE SOMEHWERE IN THAT 15 TO 20 PERCENT REDUCTION RAIN THAT INCLUDES A MASSIVE REDUCTION IN CASH RENTS. I THINK 2017 MAY BE THE BEGINNING OF THAT TREND, HOPEFULLY, AND I THINK A 20 TO 25 PERCENT REDUCTION IN CASH RENTS WOULD BE A GREAT START. IN SOUTHERN ILLINOIS, MORE REASONABLE CASH RENTS AREN'T A REALITY YET. AT WAYDE'S FARM, WHILE SOME INPUTS ARE OUT OF HIS CONTROL, HE'S TRYING TO DO WHAT HE CAN TO SPEND LESS AND HOPEFULLY WEATHER THESE LOWER PRICES. MAYBE GOING TO A DIFFERENT BEAN SEED LIKE MAYBE LIBERTY VERSUS ROUNDUP, WHERE YOU DON'T HAVE TO MAKE SO MANY TRIPS TO TRY AND KILL HTE WEEDS. HOSKINS SAYS AS A BANKER, ONE THING HE'S NOT HEARING A LOT OF DISCUSSION ABOUT IS LIVING EXPENSE. AS TIMES HAVE BEEN GOOD, THOSE LIVING EXPENSES HAVE TRENDED UP QUITE A BIT. HE SAYS THAT'S ONE AREA OF FARMERS BUDGETS THAT CAN AND NEED TO BE TRIMMED. HEADING INTO 2017, HE SAYS SURVIVAL IS NOT JUST ABOUT GOOD BUSINESS DECISIONS... RELATIONSHIPS MATTER. MAKE SURE YOUR COMMUNCIATION LINEI S REALLY REALLY GOOD WITH YOUR LENDER, WITH YOUR CROP INSURANCE AGENT, WITH YOUR MARKETING PERSON YOU ARE NOT ALONE IN THIS. IT'S GOOD TO HAVE A BANKER WHO HAS A BACKGROUND IN FARMING, TOO, BECAUSE THEY REALIZE WHAT YOUR'E GOING THROUGH. WHILE TIMES ARE TIGHT FOR SOME, THE FINAL HARVEST MIHGT JUST BE A BETTER CROP OF FARMERS. THE CHALLENGES ARE WHAT MAKE PRODUCERS BETTER AND STRONGER OVERTIME> AND FOR THE ALLARDS, CHALLENGES ARE STACKING UP, BUT A PROMSING CROP ON THE HORIZON, HIS HELPING HIM PUSH THROUGH. HOSKINS SAYS DON'T LET THE GRIM OUTLOOK ON PRICES BLIND YOU FROM GOOD OPPORTUNITIES. HE SAYS GOOD DEALS EXIST ON EQUIPMENT, OR EVEN SPLITTING A LEASE WITH A NEIGHBOR. HOSKINS SAYS GOOD CHIOCES NOW CAN SET YOU UP FOR SUCCESS DOWN THE ROAD.

 

TPP DISCUSSIONS CONTINUE

THE PRESIDENT SPENDING PART OF HIS FRIDAY WITH KEY BUSINESS LEADERS

AND POLICY MAKERS IN THE OVAL OFFICE DISCUSSING THE TRANSPACIFIC

PARTNERSHIP. PRESIDENT OBAMA EMPHASIZED THAT THE AGREEMENT GIVES THE US AN ADVANTAGE IN THE FASTEST GROWING PART OF THE WORLD. ADDING THAT THE TPP, ALSO REQUIRES COUNTRIES INCREASE THEIR LABOR AND ENVIRONMENTAL STANDARDS. HE CALLS THE FINAL AGREEMENT THE MOST EFFECTIVE, PROGRESSIVE TRADE WE'VE EVER SEEN.

 

CROP COMMENTS

CROP COMMENTS IS POWERED BY RESICORE HERBICIDE FOR CORN, FROM

DOW AGROSCIENCES. MANY PRODUCERS IN FARM COUNTRY SAW TOO MUCH RAIN LATE LAST WEEK AND INTO THE WEEKEND. MIKE HOFFMAN HAS AN UPDATE IN THIS MORNING'S CROP COMMENTS. MIKE. GOOD MORNING, CLINTON. LET'S START OFF IN A WET MAGNOLIA, MINNESOTA. A FARMER SENT US THIS PHOTO LATE LAST WEEK. HE RECEIVED OVER 6 INCHES

OF RAIN IN ONE DAY. NOT A GOOD TIME OF THE YEAR FOR THIS MUCH RAIN. HERE'S A DEALERSHIP IN THE SAME AREA, EXPERIENCING THE WOES OF TOO MUCH RAIN AS WELL.

A FARMER IN HERON LAKE, MINNESOTA SAYS HE'S KEEPING THE MACHINERY PARKED. HE RECEIVED JUST ENOUGH RAIN TO RAISE THE REEL. MIKE SAYS HIS GAUGE READ ONE INCH. THAT'S THE LOWEST AMOUNT HE HEARD FOR THURSDAY. 10 MILES SOUTH OF HIM EXPERIENCED 3-AND-A -AHLF INCHES OF RAIN. AND NOW HERE ARE SOME HOMETOWN TEMPS. MYFARMTV IS THE GO TO APP FOR AMERICAN AGRICULTURE. THE BEST NEWS, MARKET ANALYSIS AND STORIES FROM RURAL AMERICA IS NOW IN YOUR HANDS. WATCH IT ON YOUR PHONE, TABLET, OR DESKTOP ANYWHEREÖ ANYTIME. DOWNLOAD THE APP TODAY.

 

TEASE

WE'LL LOOK AT HARVEST AND MARKET EXPECTATIONS AT THE AGRIBUSINESS

DESK RIGHT AFTER THE BREAK. STICK AROUND FOLKS, COMING UP WE'RE GOING TO TALK ABOUT PRE EMMISSION TRACTORS WITH VERY LOW HOURS. AND LATER, ITS FLOWER HARVEST SEASON IN THE LONE START STATE. WE'LL SEE HOW ONE FAMILY IS WORKING TO FIND ENOUGH HANDS TO HELP PICK THIS YEAR'S CROP.

 

FROM THE FLOOR OF THE CME

AGRIBUSINESS TODAY, BROUGHT TO YOU BY YAMAHA -MAKERS OF VIKING SIDEBY-

SIDES. YAMAHA -REAL WORLD TOUGH. LETS SEE HOW MARKETS FINISHED THE WEEK.

WE HEAD OVER TO THE FLOOR OF THE CME IN CHICAGO FOR MORE ON FRIDAY'S

TRADE. THE CATTLE, WE'LL START OFF THERE, THE IMPROVED EXPORT NUMBERS THIS WEEK WHICH REALLY QUITE A LOT OF PEOPLE OFF GUARD. THE PACKERS BID PRICES ARE LOWER, THE SLAUGHTERS BEEN DOWN SLIGHTLY BUT THE WEIGHTS ARE INCREASING AND THAT IS SOMETHING THAT A LOT OF PEOPLE ARE GOING TO BE CONCERNED WITH. THERE IS ALSO SOLD A LARGE INVENTORIES THAT ARE AT THE PACKERS RIGHT NOW BUT WE DID SEE A STEADY INCLINE LAST TWO DAYS AFTER LAST WEEK WHEN WE GOT DOWN IN THE DOUBLE DIGITS AND WE GET INTO THE NINETY NINES AND NOW WE'RE BACK IN THE 106, 107 RANGE. LOOK FOR THAT TO CONTINUE. LET'S SWITCH OVER TO HOGS RIGHT NOW. THERE IS A CONCERN WITH THE WEIGHTS OF THE HOGS TOO JUST LIKE THE CATTLE. AND THE WEIGHTS

ARE COMING UP BUT THE NOVEMBER OR OCTOBER IS NATIONAL PORK MONTH AND THEY'RE LOOKING FOR SOME REALLY OUTSTANDING RETAIL SALES ON IT. WE'LL SEE HOW THAT PLAYS OFF BUT WE SHOULD EXPECT TO SEE THE HOG PRICES SLOW START TO CLIMB UP.

IN THE NEXT FEW DAYS. LET'S START OFF IN THE SOYBEAN. QUITE A GOOD RUN UP ON IT THIS MORNING.SALES WERE WITHIN THE EXPECTATIONS FOR THE WEEK. NEW CROP SALES ARE THE SECOND HIGHEST THEY'VE EVER BEEN SINCE IT'S BEEN RECORDED WHICH IS A NICE NUMBER TO HEAR ABOUT  ESPECIALLY WITH THE INVENTORY THAT WE ARE HOLDING AN ANTICIPATED GETTING AT. WE'RE REALLY SURPRISED TO SEE THOSE NUMBERS COMING OUT. SWITCHING TO CORN RIGHT NOW, OUR EXPORTS WERE A LOT LOWER THAN EXPECTED. THE YIELDS ARE LOOKING HIGHER. SO WE'RE SEEING A LITTLE BIT OF BOUNCING BACK AND FORTH BUT AGAIN TODAY WE DID SEE A THREE AND A HALF TO SIX AT RAISE THROUGHOUT THE DAY BACK AND FORTH THAT LOOKS LIKE THAT'S GOING TO CONTINUE ON. AND AGAIN THERE IS ANTICIPATION OF A LITTLE BIT HIGHER YIELD AS WE'RE GETTING CLOSER. IN FACT, SOME OF THE HARVEST IS ALREADY STARTING AND IT LOOKS LIKE THE CROP CONDITIONS ARE OUTSTANDING SO FAR. THIS IS GARY KOZLOWSKI WITH FARR FINANCIAL COMING TO YOU FROM THE CME.

 

ANALYSIS

DUANE BOSSE BOLT MARKETING OUR GUEST HERE THAT AT THE AGRIBUSINESS DESK TODAY. DUANE I KNOW IT'S OUR HARVEST SEASON WE'RE STARTING TO SEE MORE COMBINES RUN THROUGHOUT THE COUNTRY BUT DOWN IIN SOUTH AMERICA IS ACTUALLY PLANTING TIME RIGHT? YEAH ACTUALLY BRAZIL COULD START PLANTING YESTERDAY OR I'M SORRY ON THE FIFTEENTH THEY COULD START PLANTING SOYBEANS IF THEY WANTED THAT'S KIND OF THEIR EARLY SEASON PLANT DAY LIKE WE HAVE UP HERE HOWEVER THE WEATHER ARE TELLING THEM HOLD OFF A LITTLE BIT IT'S ALSO THEIR DRY SEASON STILL SO NOT PLANT IN THE COMPLETE DRY DIRT AND NOTHING WILL HAPPEN SO THEY'RE TRYING TO HOLD OFF A LITTLE BIT LATER FOR OCTOBER SO START WATCHING THE WEATHER DOWN THERE AND NOT KNOW WHETHER SEASON BEGINS AGAIN FOR US YES ABSOLUTELY. YOU KNOW WE WATCHED BRAZIL LAST YEAR STRUGGLE THROUGH FLOODING AND THEN DROUGHT WHAT DO WE ANTICIPATE THIS YEAR AS FAR AS ACRES GO AND CROP SIZE NOT ACTUALLY VERY INTERESTING ACRAGE THIS YEAR FOR THE FIRST TIME PROBABLY SINCE I CAN REMEMBER SOUTH AMERICA

WILL NOT BE INCREASING SOYBEAN ACRAGE MAYBE ONE PERCENT IN BRAZIL IS WHAT SOME PEOPLE THINK. I'M NOT EVEN SURE THEY'LL DO THAT. THEIR COSTS ARE UP ABOUT EIGHT PERCENT IN THE PLANET. THE BIGGEST THING IS THEIR CORN PRICES ARE SO HIGH RIGHT NOW. THEY'RE BUYING THE CORN ACRES AND SO WAS ARGENTINE REMEMBERED ARGENTINA NOT HAVE THE CORN EXPORT TAX THIS YEAR SO WE ALREADY KNOW THEIR CORN ACRES ARE GOING TO INCREASE AND THAT'S GOING TO COME TO THE EXPENSE OF SOYBEANS SO WHAT WE LEARN THIS LAST YEAR IN SOYBEANS IS WE NEED ARGENTINA BRAZIL AND THE

U S ALL TO BASICALLY HAVE A RECORD SOYBEAN CROPS OTHERWISE SOYBEAN PRICES ARE GOING TO GO BALLISTIC BECAUSE THE DEMAND DOES KEEP GROWING CHINA SO NOW THAT THEY'RE NOT GOING TO INCREASE ACREAGE WHICH WE NORMALLY DO DOWN THERE IT IS JUST REALLY LIGHTS THAT SPARK THAT COULD TURN INTO A REALLY BIG FIRE ON THE SOYBEAN MARKET AGAIN IF THEY HAVE ANY WEATHER PROBLEMS IN SOUTH AMERICA WITHOUT ANY NEW ACREAGE INCREASE IT COULD BE HUGE RIGHT AND WE'RE HAVING A LITTLE BIT OF OUR OWN WEATHER PROBLEMS AS FAR AS SOME RAINS AS WE START HARVEST HERE IN SOME WET FIELDS YOU SEE ANY CHANCE TO SPARK A RALLY HERE WITH THAT. WELL ABSOLUTELY IT ACTUALLY KIND OF SCARES ME BECAUSE I AM KNOWN AS A BEAR RIGHT NOW. SEASONAL

TENDENCIES FOR SOYBEANS TO GO LOWER I'M TRYING TO SELL AT THE END OF THIS WEEK I THINK IT'S A SMART MOVE BY IT I'M GOING TO WATCH A WEATHER FORECAST REALLY CLOSE SUNDAY NIGHT MONDAY MORNING BECAUSE IF THIS HARVEST GETS WETTER AND WETTER AND WE CAN'T GET THE BEANS WE ALREADY KNOW THE WHOLE WORLD IS WAITING FOR OUR BEANS RIGHT NOW IF HARVEST IS DELAYED TWO TO THREE WEEKS YOU GET A SPARK IN SOYBEAN PRICES RIGHT NOW IN TALKING TO DIFFERENT BROKERS IN EACH STATE WHICH WE DO EVERY MONDAY MORNING I GOT TO TELL EVERY ONE OTHER THAN ME IN THE

DAKOTAS SAID THAT THEIR SOYBEAN CROP IS PROBABLY ONE TO TWO WEEKS BEHIND BECAUSE THE IDEAL COOL WEATHER WE'VE HAD HAS DELAYED MATURITY WHICH ALSO MEANS A BIG CROP TOO. BUT WE GOTTA GET OUT OF THE FIELD AT SOME POINT. WE APPRECIATE YOU BEING HERE WILL BE BACK WITH MORE AGDAY IN JUST A MINUTE.

FOR MARKETING ADVICE CALL BOLT MARKETING A FUTURES AND OPTIONS BROKERAGE FIRM. GROWING CORN AND SOYBEANS IS ABOUT MORE THAN JUST YOUR YIELD. IT'S WHAT YOU WERE MEANT

TO DO. VISIT ACRES OF POSSIBILITY.COM TO DISCOVER THE POTENTIAL OF MYCOGEN SEEDS.

 

 

WEATHER

WELCOME BACK TO AGDAY ON THIS MONDAY MORNING. METEOROLOGIST MIKE HOFFMAN HERE. LOOKING AT RAIN IN THE LAST SEVEN DAYS AND YOU COULD SEE THOSE AREAS RIGHT THERE IN THE MIDDLEOF THE MIDWEST GOT HIT. I KNOW IT AS SOME OF THOSE AREAS JUST CONTINUE TO GET A MULTIPLE SHOWERS AND STORMS. YOU CAN ALSO SEE SOME ALONG THE GULF COAST IN THE SOUTHEAST ALTHOUGH REALLY THAT SOUTHEASTERN STORM DIDN'T AMOUNT TO TOO MUCH.ZOOMING INTO THE MIDDLE OF THE COUNTRY THOUGH, THAT IS WHERE THE HEAVIEST AMOUNTS FELL TO THE NORTH AND WEST OF KANSAS CITY IT APPEARS. THAT THIS IS OVER THE LAST WEEK AS OF LAST FRIDAY. SO, IT'S BASICALLY THE SEVEN DAYS INCLUDING LAST FRIDAY AND YOU CAN SEE SOME AREAS OVER EIGHT INCHES TO THE NORTH AND WEST OF KANSAS CITY, LOTS OF THE EASTERN PORTIONS OF NEBRASKA, A WHOLE BUNCH OF IOWA EXCEPT THE SOUTHEAST CORNER, PARTS AND MUCH OF EASTERN KANSAS ALSO HAD SOME VERY HEAVY AMOUNTS OF RAIN. JET STREAM THIS WEEK SHOWS A BASIC ZONAL FLOW ACROSS MOST OF THE COUNTRY, ALTHOUGH THERE IS A TROUGH IN THE EAST TO START THE WEEK AS WE HEAD THROUGH THE WEEK THOUGH THAT THE TROUGH WILL CONTINUE TO MOVE OFFSHORE AND THEN WE GO ZONAL WITH THE TROUGH DIGGING IN AND OUT WEST.

NOW AS WE HEAD THROUGH THE LATTER PART OF THE WEEK THEN WE'LL SEE A RIDGE DEVELOP FOR A LITTLE WHILE AHEAD OF THE STORM SYSTEM AND THIS IS GOING BE A PRETTY WET STORM SYSTEM IT MAY ALSO HAVE SOME TROPICAL MOISTURE FEEDING INTO

THE PACIFIC OCEAN BECAUSE THERE'LL BE A TROPICAL STORM AND HURRICANE OUT THERE EARLY IN THE WEEK AND WE'LL HAVE TO SEE EXACTLY WHERE THAT MOISTURE GOES. BUT EITHER WAY IT'S GOING TO HAVE A LOT OF MOISTURE AND IT'S GOING TO BE A WET WEATHER MAKER IF YOU GET IN THE FIELD BEFORE THIS RAIN COMES ANY PARTS OF THE NORTHERN PLAINS WILL BE DOING OK AND AND THAT SPREADS EASTWARD AS WE HEAD

THROUGH NEXT WEEKEND IN OF THE GREAT LAKES AND NORTHEAST IN THOSE AREAS LOOK TO BE A TURNING PRETTY WET DURING THAT TIME PERIOD AS WELL SO TEMPERATURES THIS WEEK GOING ABOUT NORMAL FOR A GOOD CHUNK OF THE LOWER FORTY EIGHT GREAT LAKES CENTRAL SOUTHERN PLAINS MOST OF THE EAST EXCEPT FOR A FLORIDA AND ALSO TEXAS THROUGH THE SOUTHWEST BELOW NORMAL IT ENTERS EXPECTED FROM COLORADO OR

WYOMING LESS A N A IDAHO ON NORTHWARD ALL THE WAY INTO A MUCH OF WESTERN CANADA'S FORCE PRECIPITATION FOR THE COMING WEEK.

AND GOING ABOVE NORMAL FROM THE SOUTHWEST, FOUR CORNERS REGION UP ALONG THE  CANADIAN BORDER BASICALLY FROM WASHINGTON ALL THE WAY OVER INTO A MINNESOTA AND AGAIN AS WE HEAD INTO NEXT WEEKEND THIS WILL ALL SPREAD EASTWARD BUT BELOW NORMAL FOR MOST OF THE EAST COAST AND ALSO FOR THE FAR WEST. THE THIRTY DAY OUTLOOK FOR TEMPERATURES ABOVE NORMAL OHIO VALLEY MID ATLANTIC GREAT LAKES. ALL THE WAY THROUGH MOST OF CANADA AND MUCH OF THE WEST. BELOW NORMAL THOUGH FROM ABOUT KANSAS CITY SOUTHWARD ALL THE WAY INTO A MUCH OF THE EASTERN PORTIONS OF TEXAS. AND THIRTY DAY OUTLOOK FOR PRECIPITATION, TEXAS GULF COAST AREA SOUTHEASTERN ALSO UPPER MIDWEST INTO THE GREAT LAKES EXPECTED TO BE ABOVE NORMAL. THAT'S A LOOK ACROSS A COUNTRY. NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. BURNS, OREGON, FIRST OF ALL PARTLY SUNNY AND PLEASANTLY WARM TODAY. HIGH TEMPERATURE UP TO 79. BRADY TEXAS A GOOD DEAL OF SUNSHINE AND QUITE WARM. HIGH OF THE NINETY ONE. AND SOUTH BEND, INDIANA, PARTLY TO MOSTLY SUNNY SKIES IT'LL BE WARM. HIGH TEMPERATURE AROUND EIGHTY DEGREES.

 

TEASE

ARE YOU LOOKING FOR TRACTORS WITH AN ENGINE BUILT BEFORE THE NEW

EMISSIONS REQUIREMENTS? MACHINERY PETE JOINS US NEXT, TO LOOK AT PRICE TRENDS IN PRE-EMISSION TRACTORS. AND LATER, CUT FLOWERS FROM TEXAS AND THE CHALLENGES OF FINDING HARVEST LABOR.

 

MACHINERY PETE

MACHINERY PETE -SPONSORED BY THE GRIT, TOUGHNESS AND PERSERVERANCE OF FARMERS

EVERYWHERE, WHO RELY ON CHEVRON DELO. BECAUSE UNCOMMON JOBS REQUIRE UNCOMMON TOUGHNESS. CHEVRON DELO -LET'S GO FURTHER.

A FEW YEARS BACK EMISSION REQUIREMENTS CHANGED FOR FARM EQUIPMENT.

THIS MORNING, MARCHINERY PETE JOINS US WITH A LOOK THE IMPACT ON

AUCTION PRICES FOR MACHINES THAT WERE BUILT BEFORE THE NEW

STANDARDS. FOLKS, ONE OF THE TRENDS I'M CONTINUING TO SEE OUT THERE IS PRE

EMMISSION TRACTORS WITH LOW HOURS. THE DEMAND FOR THEM IS THROUGH

THE ROOF. NOW A RECENT EXAMPLE WITH A RECENT FARM AUCTION IN

SOUTHWEST OHIO IS 2002 JOHN DEERE 7810 AT 1623 HOURS ON IT FOR 90THOUSAND

BUCKS. THAT'S A SUPER HIGH AUCTION SALES PRICE BUT FACT IS I'VE

SEEN 6 OF THEM SOLD HIGHER AT AUCTION THE LAST 5 YEARS. NOW THIS JOHN

DEERE 7810 FOR 90-THOUSAND BUCKS, I POSTED A PICTURE OF IT TO OUR

MACHINERY PETE FACEBOOK PAGE AND A COUPLE HOURS, WE HAD OVER 30

COMMENTS FROM PEOPLE ALL OVER THE WORLD. A LOT OF COMMENTS WERE ABOUT THE ENGINE AND PRE EMMISSION. ONE GUY ON THERE COMMENTED, PETE, I THINK THESE PRE EMMISSION TRACTORS ARE GOING TO BE MORE VALUABLE THE NEXT COUPLE OF YEARS. THIS IS A TREND WE SEE ACROSS ALL COLOR LINES. DOESN'T MATTER IF IT'S JOHN DEERE, CASE I H, AGCO OR NEW HOLLAND. IF THEY'RE NICE AND LOW HOURS AND 10 TO 15 YEARS OLD, THE DEMAND IS THERE. THE 7810 IS ONE OF THE MOST SEARCHED MODELS ON MACHINERYPETE.COM. THAT SHOWS HE'S A BUYER WITH INTEREST. NOW, TODAY ON MACHINERYPETE.COME, WE HAVE 73 7810S LISTED FOR SALE UNDER 4 THOUSAND HOURS. AND ASKING PRICE ON EACH OF THEM IS UNDER 90 THOUSAND BUCKS.

 

TEASE

THANKS GREG. WHEN WE COME BACK, WE'LL LOOK AT CUT FLOWERS IN TEXAS AND THE CHALLENGES THESE GROWERS ARE FACING TO GET THE CROP FROM THE FIELD TO THE FLORIST.

 

IN THE COUNTRY

IN THE COUNTRY -BROUGHT TO YOU BY KUBOTA'S BX AND L SERIES COMPACT TRACTORS -AVAILABLE NOW WITH A SIX-YEAR LIMITED POWERTRAIN WARRANTY.LEARN MORE TODAY AT YOUR LOCAL KUBOTA DEALER.

FIELDS OF FLOWERS IS A BIG INDUSTRY IN PARTS OF THE COUNTRY. IN TEXAS CUT FLOWERS IS A BLOOMING BUSINESS BUT LABOR CONTINUES TO BE A CHALLENGE. ED WOLFF WITH THE TEXAS FARM BUREAU HAS MORE. EVERYONE LOVES FLOWERS. AND TEXANS LOVE TEXAS FLOWERS. FRANK & PAMELA ARNOSKY HAVE BEEN GROWING THE BOTANICAL BEAUTIES FOR 25 YEARS. WHEN YOU PICK UP A BOUQUET AT YOUR LOCAL GROCERY STORE. THEY MAY HAVE BEEN GROWN ON THEIR HILL COUNTRY FARM. "THE GREAT THING ABOUT GROWING FLOWERS IT TO SEE PEOPLE RESPONSE. TO HAVE PEOPLE SAY, 'OH MY GOSH THESE ARE BEAUTIFUL OR BETTER YET THEY WILL TAKE THEM FOR A WEDDING OR EVENT AND YOU GET THANK YOU NOTES SO SOMETHING THEY'VE COME OUT. A PRODUCT THEY'VE PURCHASED FROM YOUAND THEY COME OUT AND THANK YOU FOR IT. FOR DOING WHAT YOU DO. ITS GREAT."THEY GROW SUNFLOWERS, ZINNIAS, MARIGOLDS, ORCHARDS AND MUCH MORE. ABOUT 75 DIFFERENT FLOWERS IN ALL. ABOUT 90% OF WHAT GROW IS FOR TEXAS GROCERY STORES, SO THEY HAVE BEAUTIFUL FLORAL ARRANGEMENTS. BUT THEY ALSO SELL A FEW FLOWERS AT THEIR FARM. PAMELA RUNS THE FARMERS MARKET OUT OF THEIR BIG BLUE BARN ON SATURDAY MORNINGS. THE REST OF THE WEEK THEY TAKE A DIFFERENT APPROACH."WE DON'T OPERATE THE MARKET WITH SOMEBODY THERE WE JUST PUT THE FLOWERS IN THE BARN. | WE HAVE A CASH BOX AND IT'S AN HONOR SYSTEM. | PICK UP A BOUQUET AND PUT THE MONEY IN THE CASH BOX. AND ITS GOTTEN FAIRLY FAMOUS OUT HERE IN THE HILL COUNTRY WE HAVE THIS TRUST SYSTEM. | AND IT WORKS." FRANK & PAMELA'S FARM BEGAN TO BUD RIGHT OUT OF COLLEGE. THEY STARTED WITH ONE ACRE AND NOW THEY'RE UP TO 20. THEY'VE BLOOMED FROM A MOM & POP FLOWER FARM TO A MAJOR PLAYER IN TEXAS CUT FLOWERS. THEY DELIVER ALL OVER TEXAS AND EVEN SEVERAL SURROUNDING STATES. GROWTH HAS BEEN BOUNTIFUL BUT IT'S HAD ITS CHALLENGES. HIS BIGGEST IS FINDING ENOUGH PEOPLE TO HELP ON THE FARM. IF I HAD ADEQUATE LABOR TODAY I WOULD BE PRODUCING TWICE AS MANY FLOWERS. WE HAVE THE MARKET FOR IT. | THIS YEAR WE HAD TO PULL BACK FROM THE STORES WE USED TO SELL TO IN HOUSTON BECAUSE WE SIMPLY DON'T HAVE ENOUGH LABOR TO HARVEST THE FLOWERS." FRANK SAYS THE PROGRAM WORKS WHEN IT'S ALLOWED TO WORK. BUT HE AND PAMELA AREGETTING WEARY OF THE MONTHS OF STRUGGLE JUST TO GET SOME HELP. HELP TO KEEP THEIR DREAM ALIVE. A DREAM TO ALLOW EVERYONE THE CHANCE TO TAKE A LITTLE PIECE OF THE TEXAS HILL COUNTRY HOME. AND ENJOY THE BEAUTY OF TEXAS BLOOMS. WITH THE TEXAS FARM BUREAU, ED WOLFF, BLANCO.

 

CLOSE

THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.FOR TYNE MORGAN AND MIKE HOFFMAN, I'M CLINTON GRIFFITHS. HAVE A GREATDAY. HIGH STRENGTH STEEL FOR HIGH STRENGTH DEPENDABILITY, THE CHEVY SILVERADO IS THE OFFICIAL NEWS GATHERING VEHICLE OF AGDAY TELEVISION

 

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