AgDay Daily Recap - January 29, 2018

January 29, 2018 02:57 AM
 
AgDay

TODAY ON AGDAY
JANUARY 29, 2018

HEADLINES

"WE WILL ENFORCE OUR TRADE LAWS AND RESTORE INTEGRITY TO OUR TRADING SYSTEM." PRESIDENT CONTINUES HIS STRONG STANCE ON GLOBAL TRADE. PLUS, THE LATEST CATTE ON FEED NUMBERS. IN AGRIBUSINESS...BREAKING DOWN THE RECENT BEAN RALLY. MACHINERY PETE IS LOOK BACK AT FOURTH QUARTER TRENDS. AND MEET THIS YEAR'S INNOVATIVE DAIRY FARMERS OF THE YEAR. AGDAY-BROUGHT TO YOU BY THE DEPENDABLE, LONG LASTING CHEVY  SILVERADO.

TRADE TALKS
GOOD MORNING I'M CLINTON GRIFFITHS. THE ADMINISTRATION HOPING TO CONTINUE MOMENTUM FOR THE U.S. ECONOMY  AND TRADE FOLLOWING LAST WEEK'S MEETINGS AND THE PRESIDENT'S SPEECH  IN DAVOS, SWITZERLAND. "WE SUPPORT FREE TRADE, BUT IT NEEDS TO BE FAIR AND IT NEEDS TO BE RECIPROCAL BECAUSE IN THE  END UNFAIR TRADE UNDERMINES US ALL. THE UNITED STATES WILL NO LONGER TURN A BLIND EYE TO UNFAIR  ECONOMIC PRACTICES "THE TRUMP ADMINISTRATION IS IN THE MIDDLE OF RENEGOTIATING MULTIPLE  TRADE DEALS.  BETSY JIBBEN REPORTS. TRADE CONTINUES TO BE TOP OF MIND FOR THE ADMINISTRATION ESEPECIALLY FLLOWING LAST WEEK'S RETALIATION ON CHINA'S SOLAR INDUSTRY.  THAT HAS THE INDUSTRY WORRIED SOYBEANS MAY GET STUCK IN THE MIDDLE. THE PRESIDENT ANNOUNCING A 30 PERCENT TARIFF ON SOLAR PANEL IMPORTS  WITH CHINA. NOW THERE'S TALK IT MMAY GO AFTER STEEL AND ALUMINUM  IMPORTS NEXT.  "I THINK IT'S MORE THAN STEEL AND SOLAR PANNELS. IT STARTED WITH INTELLECTUAL PROPERTY  WITH THE CHINESE. 08 THIS STEEL AND ALUMNIUM THING IS COMING DOWN THE PIPE AND BURRS UNDER  THE SADDLE. 11 I DONT WORRY ABOUT IT THAT MUCH TO BE HONEST WITH YOU. "MEANWHILE, ANOTHER ROUND OF NAFTA TRADE TALKS ENDING IN MONTREAL  THIS MORNING BETWEEN THE U.S., CANADA AND MEXICO.  TRUMP LAST WEEK AT THE WHITE HOUSE HIGHLIGHTING THE RENEGOTIATION IS  MOVING ALONG WELL BUT IF IT DOESN'T WORK OUT, HE SAYS THEY'LL TERMINATE  IT.  "IT'S A VERY CLASSIC TRUMP NEGOTIATING ANGLE. HE HAS SAID THESE TALKS COULD WELL GO AFTER THE  MEXICO'S ELECTIONS IN JULY , MEXICO SAYING THEY CAN NEGOTIATE BEFORE THEIR ELECTIONS BUT I REALLY  THINK WE ARE LOOKING AT HTE END OF THE YEAR BEFORE THESE TALKS END. I PRIVATELY BELIEVE WE WILL  GET AN AGREEMENT..""IT'S WHAT WE LIVE BY. WE NEED NAFTA. WE NEED TRADE WITH OUR CLOSEST NEIGHBORS.  (TAKE OUT MIDDLE) THE WAY HE'S DOING THINGS, I'M NOT SURE IF IT WORKS IN THESE TYPE OF  AGREEMENTS WHEN IT'S WORKED WELL FOR HIM IN REAL ESTATE FOR TAKING IT  FORWARD. NOT LETTING THE  OTHER PARTY KNOW YOU ARE DESPERATE TO GET SOMETHING DONE."ALSO THIS WEEK, TRADE DISCUSSIONS BETWEEN - THE THE U.S. AND SOUTH  KROEA FOR THE KORUS DEAL- A DEAL WHICH HASN'T BEEN IMPLEMENTED LONG. "ACROSS THE AG SPECTRUM, YOU SEE GREAT STRIDES ACROSS THE MARKET SHARE OF WHAT THE  U.S. HAS GAINED INTO KOREA. AS TARIFFS ON AG PRODUCTS HAVE GONE DOWN. BEEF EXPORTS HAVE  GONE UP 60 PERCENT"AT THE SAME TIME,  THE TRANS PACIFIC PARTNERSHIP AGREEMENT IS MOVING FORWARD WITHOUT  THE UNITED STATES. THE PRESIDENT NOW VOCAL ABOUT POTENTIALLY R E- JOINING THE TRANS PACIFIC PARTNERSHIP IF THE U.S. COULD GET A  SUBSTANCIALLY BETTER DEAL.  REPORTING FOR AGDAY, I'M BETSY JIBBEN.  THE PRESIDENT MET WITH EXECUTIVES WHILE HE WAS IN DAVOS, SWITZERLAND.  BLOOMBERG REPORTING THE PRESIDENT ASKING BAYER AG CEO WERNER  BAUMANN IN DAVOS, - ARE YOU GOING TO BE INVESTING IN THE U.S.?  WHEN BAUMANN NOTED A 16 BILLION DOLLAR INVESTMENT NEAR ST. LOUIS, THE  PRESIDENT NODDING HIS APPROVAL. 

TAX CODE AND 199A
WASHINGTON WILL HAVE PLENTY ON ITS PLATE AS WORK RESUMES THIS WEEK. FROM IMMIGRATION TALKS TO FIXING A LOOPHOLE IN THE RECENT TAX BILL. THE AG INDUSTRY CLAIMING THE NEW TAX CODE IS A RED FLAG--PICKING ONE  SIDE OVER ANOTHER.   PROVISION 199A HAS PRIVATE ELEVATORS SAYING IT WILL PUT THEM AT A  DISADVANTAGE TO FARMER OWNED COOPS.  WHAT'S THE LIKELIHOOD THAT PORTION OF THE TAX CODE COULD CHANGE? TYNE MORGAN SITS DOWN WITH PAUL NEIFFER AT THE AGRIBUSINESS DESK.  THANKS SO MUCH. CLINTON HERE AT THE AGRIBUSINESS DESK WITH PAUL NEIFFER. PAUL YOU KNOW  WHEN WE LOOK AT ONE NINETY NINE A WITHIN THIS TAX REFORM THERE'S BEEN A LOT OF BUZZ ABOUT IT.  WHY IS IT CREATING SO MUCH CONTROVERSY WITHIN AGRICULTURE.  YOU KNOW THE PRIMARY ISSUE IS THAT AT THE VERY LAST MINUTE THEY PUT IN A PROVISION THAT WAS  DESIGNED TO SORT OF KEEP THE COOPERATIVES ON THE SAME FOOTING AS THEY WERE UNDER THE OLD  199. AND BECAUSE OF THAT IT REALLY WASN'T VETTED AS WELL AS IT MAYBE SHOULD HAVE BEEN. AT THE  VERY END OF THE OF THE TAX BILLS SO WHAT'S HAPPENING IS FARMERS THAT SELL TO A COOPERATIVE  ACTUALLY POTENTIALLY GET A MUCH LARGER DEDUCTION THAN WHAT THEY SELL TO THE PRIVATES. SO  BECAUSE OF THAT YOU KNOW THE PRIVATES GOT TOGETHER THEY'VE GOTTEN TOGETHER WITH THE SENATORS  THAT SORT OF HELP CRAFTED IT AND THEY'VE GONE AND SAID OK WE NEED TO SORT OF GET THIS FIXED.  AND THAT'S THE PROCESS WE'RE WE'RE AT RIGHT NOW WE'RE TRYING TO GET THAT FIXED UNTIL LEGISLATORS  ARE TRYING TO TIE THAT IN TO THE LARGER BUDGET BILL THE STOPGAP MEASURE THAT WAS PASSED THIS WEEK NO NOTHING TIED TO THAT OF COURSE. SO YOU KNOW THERE ARE STILL POSSIBILITIES THAT WE COULD  GET IT FIXED IF WE CAN REACH A DEAL IN CONGRESS. BUT MY QUESTION IS PAUL HOW DO YOU NOT  FORESEE THIS POTENTIAL ISSUE WITH 199. I MEAN IT SEEMS LIKE A PRETTY BIG LOOPHOLE.  IT'S JUST THE LAW OF UNINTENDED CONSEQUENCES. IT WAS DESIGNED TO SORT OF KEEP THE DAIRY  FARMERS IN THE SUGAR BEET FARMERS ON THE FOOTING THAT THEY WERE BEFORE THOSE LARGE  PROCESSING TYPE COOPERATIVES WERE ABLE TO PASS THROUGH A GOOD SIZE DEDUCTION TO THEM. YOU  KNOW WHEN THEY PUT IN THIS NEW PROVISION THE LAW OF UNINTENDED CONSEQUENCES DIDN'T REALIZE  IT WAS GOING TO PROVIDE SUCH A LARGE DEDUCTION FOR THE CROP FARMERS AND THAT'S WHY WE'RE  HAVING THIS ISSUE RIGHT NOW. BUT YOU DO THINK THAT WE'LL SEE A FIX. I THINK WE'LL DEFINITELY SEE  SOME TYPE OF A FIX.  ALL RIGHT PAUL THANK YOU AND WE'LL CONTINUE TO COVER THIS ON AG DAY AS WELL. CLINTON BACK TO  YOU.  THANKS TYNE.

CATTLE ON FEED
ON FRIDAY USDA RELEASING IT'S JANUARY CATTLE ON FEED REPORT AMID  EXPECTATIONS OF INCREASING NUMBERS AT AMERICA'S FEEDLOTS. USDA SAYS 11 AND A HALF MILLION HEAD WERE ON FEED AS OF JANUARY FIRST. THAT'S 8 PERCENT HIGHER THAN A YEAR AGO. HEIFERS WERE 16 PERCENT HIGHER. ANALYSTS ATTRIBUTING INCREASING DRYNESS AND A BIGGER HERD TO THE  INCREASE. PLACEMENTS IN FEEDLOTS TOTALED 1.8 MILLION HEAD A 1 PERCENT INCREASE. MARKETINGS WERE ONE PERCENT LOWER. (1.75 MILLION) A SHAKE UP MAY BE BREWING AT THE HUMANE SOCIETY OF THE U.S. ITS BOARD OF DIRECTORS IS INVESTIGATING CEO WAYNE PACELLE FOR  WORKPLACE MISCONDUCT. A SPECIAL COMMITTEE HAS BEEN FORMED TO OVERSEE THE INVESTIGATION. THE BOARD CHAIR SAYS THEY CANNOT SHARE ANY INFORMATION AT THIS TIME.

MEANWHILE, DECATUR MICHIGAN FARMER MIKE STAMP PLEADING NOT GUILTY  LAST WEEK IN FEDERAL COURT. HE FACES 14 FEDERAL CHARGES, INCLUDING CROP INSURANCE FRAUD AND  BANKRUPTCY FRAUD.  ACCORDING TO COURT RECORDS,  STAMP MADE FALSE CLAIMS ABOUT THE  NUMBER OF ACRES HE FARMED, FORGED FALSE DOCUMENTS, HID MONEY AND  ASSETS, AND WAS ALSO IN A MULTI-PERSON FEDERAL CROP INSURANCE FRAUD  SCHEME.  TWO OTHER INDIVIDUALS WERE INDICTED ALONG WITH STAMP.  STAMP WAS ARRESTED IN DECEMBER, BUT RELEASE ON BOND IN JANUARY.  A NEW COURT DATE IS SET FOR FEBRUARY.

CROP COMMENTS
CINDI CLAWSON IS IN FOR MIKE HOFFMAN TODAY AND SHE HAS TODAY'S CROP  COMMENTS. GOOD MORNING, CLINTON.  THERE'S NOT TOO MUCH GOING ON IN FARM COUNTRY DURING JANUARY DURING  IOWA. THAT'S WHY KYLE WENDLAND AND HIS SON ARE DOING SOME SHOP WORK THIS  WEEK.  TEMPERATURES IN NORTHEAST IOWA ARE LINGERING IN THE 20S AND 30S THIS  WEEK.  RON HAASE SENDING US PICTURES FROM MATTO GROSSO, BRAZIL. HE SAYS  FARMERS SHOULD BEGIN HARVESTING SOYBEANS SOON. THEY ARE  ANTICIPATING 53 BUSHELS PER ACRE.  AND NOW HERE'S A LOOK AT SOME HOMETOWN TEMPS. 

TEASE
WHEN WE COME BACK WE'LL LOOK AT LAST WEEK'S UPTICK IN SOYBEAN PRICES.PLUS MACHINERY PETE IS HERE. STAY TUNED FOLKS. COMING UP I'LL GIVE YOU THE INSIDE SCOOP ON THE LATEST WITH USED EQUIPMENT  VALUES. AND LATER, WE'RE OFF TO PENNSYLVANIA TO MEET THIS YEAR'S INNOVATIVE DAIRY FARM OF THE YEAR.

AGRIBUSINESS
HERE NOW WITH BRIAN SPLITT BRIAN WHEN WE LOOK AT THESE SOYBEAN PRICES I MEAN RECENTLY IN  JANUARY WE HAD SOME FAVORABLE ACTION IN THE SOYBEAN PIT IS THAT FUNDAMENTALLY DRIVEN OR  MORE EMOTIONAL AT THAT POINT. WELL I THINK THE TRADE RIGHT NOW IS PAYING ATTENTION TO SOUTH  AMERICAN WEATHER HAS BEEN VERY DRY IN ARGENTINA. BUT FROM A WEATHER PERSPECTIVE THAT IS  THAT I'M GETTING FROM OUR WEATHER CONSULTANT IS THAT WHAT WE POTENTIALLY ARE LOSING IN  ARGENTINA IS GOING TO BE OFFSET BY BRAZIL BRAZIL IS GOING TO HAVE A GREAT CROP. SO THE TOTALITY OF  THE TWO STILL LOOKS LIKE WE'RE GOING TO HAVE A LOT OF COMPETITION OUT OF SOUTH AMERICA AND I  THINK THAT MEANS THAT THIS WEATHER RALLY RIGHT NOW SIMILAR TO THE ONE THAT WE HAD IN EARLY DECEMBER IS AN OPPORTUNITY TO GET SOME MARKETING DONE. SO YOUR ADVICE IS TAKE ADVANTAGE  OF THESE PRICES RIGHT NOW. RIGHT. I UNDERSTAND THAT A LOT OF THE OLD CROP HAS PROBABLY BEEN  MOVED AND IF A PRODUCER IS HOLDING ON TO SOME OF THE OLD CROP AND MAYBE SOME MINOR  BUSHELS THAT THEY WANT TO HOLD ON TO HAS SOME YOU KNOW GAMBLING BUSHELS FOR LACK OF A  BETTER TERM. BUT I THINK RIGHT NOW AS WE'RE GETTING AHEAD AND LOOKING AT THE NOVEMBER 18  CONTRACT AND THE NEW CROP IF YOU HAVEN'T DONE ANYTHING YET YOU NEED TO START REALLY THINKING  ABOUT WHERE YOUR LEVELS ARE AND HAVE SOME KIND OF A PLAN PUT TOGETHER BECAUSE BEANS BACK  OVER TEN DOLLARS SHOULD BE TAKEN ADVANTAGE OF. DO YOU HAVE ANY SPECIFIC EXAMPLES OF A PLAN  THAT THAT'S WORKED. YOU KNOW ONE THING THAT WE DID LAST YEAR AND I THINK WE'VE GOT A VERY  SIMILAR SETUP TO LAST YEAR WITH VERY SIMILAR PRICE LEVELS IS WE GO INTO THE SHORT DATED OPTIONS  AND A SHORT DATED OPTION THE SHORT DATED MONIKER MEANS THAT IT'S PRICED OFF OF THE NEW CROP  CONTRACT SO USED TO BE THAT YOU HAD TO GO ALL THE WAY OUT TO NOVEMBER AND BUY ALL OF THAT  PREMIUM TO HAVE AN OPTION FOR A NEW CROP. NOW YOU CAN HAVE A SHORT DATED OPTION. SO ONE  OF THE THINGS I'VE BEEN DOING RECENTLY IS SELLING AND AT THE MONEY CALL SO TODAY THAT MIGHT BE  A 10 10 CALL AND USING THAT ONE CALL TO BUY 2 990 PUTS AT EVEN MONEY. SO IF THE MARKET GOES  UP IT'S NO WORSE THAN BEING SHORT ONE FUTURE CONTRACT. BUT IF THE MARKET GOES DOWN DRASTICALLY  FROM HERE YOU'VE GOT DOUBLE THE COVERAGE. SO 25 PERCENT SOLD CALL EQUALS A 50 PERCENT  COVERAGE ON TWO PUTS. ALL RIGHT BRIAN THANK YOU SO MUCH. SOME SOLID ADVICE THERE. WE  APPRECIATE IT. ALL RIGHT. STAY WITH US. WE NEED TO TAKE A QUICK BREAK BUT THEN WE'LL HAVE A  CHECK OF WEATHER. ON AGDAY. 

WEATHER
WELCOME BACK TO AGDAY HERE WITH CINDY CLAWSON LOOKING AT THE RAINFALL OVER THE LAST WEEK  CINDY AND IT LOOKS LIKE RULES A LOT OF IT WAS CONCENTRATED ON THE OTHER SIDE OF THE ROCKIES AND  MAYBE INTO THE NORTHEAST. YEAH OTHER THAN THE KIND OF THE PACIFIC NORTHWEST A LOT OF WHAT  WE'VE SEEN OVER THE LAST WEEK HAS BEEN IN THE EAST. LET'S TAKE A LOOK AND YOU CAN SEE THAT  WE DID HAVE SOME RAIN FALL AND SOME SNOWFALL IN PARTS OF THE PLAINS STATES UPPER MIDWEST ALL  THE WAY DOWN THE MISSISSIPPI RIVER BUT KIND OF WHERE WE SAW THE HEAVIEST RAIN WAS REALLY  OVER IN THE NORTHEASTERN UNITED STATES AND SOME SNOW AS WELL. AND AS YOU TAKE A LOOK  ESPECIALLY OVER IN KIND OF THE NORTH CENTRAL PART OF NEW YORK WHERE WE HAD SOME HEAVY  AMOUNTS OF PRECIPITATION. AND HERE'S A LOOK AT WHAT WE CAN EXPECT AS WE HEAD INTO THE  WEEKEND WE'RE GOING TO SEE SOME UPS AND DOWNS BUT A LOT OF COLD AIR ESPECIALLY IN THE NORTH  CENTRAL UNITED STATES WHERE WE SEE THIS BIG TROUGH THAT'S DIPPING DOWN INTO THE GREAT LAKES  AND BEYOND. WE'RE LOOKING AT WARM TEMPERATURES TO START OFF THE WEEK IN THE WESTERN UNITED  STATES TROUGH DIGS ALL THE WAY DOWN INTO THE SOUTHEAST UNITED STATES KIND OF MOVES OFF. WE  STILL REMAIN COLD ALONG THE NORTHERN TIER STATES BUT WE KIND OF MODERATE A LITTLE BIT IN SOME OF  THE CENTRAL UNITED STATES STILL WARM THOUGH OUT WEST AS YOU HEAD INTO THE LATTER PART OF THE  WEEK. STILL WARM OUT WEST BUT ANOTHER TROUGH DIGS DEEP INTO THE SOUTH. SO WE'RE LOOKING AT  SOME PRETTY COLD AIR ESPECIALLY TO END OUR WEEK AS WE MOVE ON ALONG. AND THEN WE SEE THAT  TROUGH CONTINUING INTO THE NORTHEAST THE LOOK OF SOME REALLY COLD AIR ESPECIALLY TO THE END OF  THE WEEK INTO THE WEEKEND AND EVEN INTO THE EARLY PART OF NEXT WEEK. ALL RIGHT. AS FAR AS THIS  WEEK BELOW NORMAL TEMPERATURES AND I BET THEY'RE GOING TO STRETCH EVEN FURTHER TO THE EAST  THAN THIS. WE'RE LOOKING AT THOSE ABOVE NORMAL TEMPERATURES ESPECIALLY OUT IN THE  SOUTHWESTERN PARTS OF THE UNITED STATES. ALL RIGHT AS WE TAKE A LOOK AT OUR PRECIPITATION I  KNOW A LOT OF FOLKS ARE CONCERNED ABOUT THAT. WE'RE LOOKING AT SOME ABOVE NORMAL  PRECIPITATION IN THE EASTERN PARTS OF THE COUNTRY LITTLE TRY OUT IN MUCH OF THE PLAINS STATES AND  INTO THE FOUR CORNERS REGION. BUT ABOVE NORMAL IN MUCH OF THE NORTHWEST AS FAR AS THE NEXT  30 DAYS WE ARE LOOKING AT BELOW NORMAL TEMPERATURES FOR MUCH OF THE GREAT LAKES IN FACT  MUCH OF THE EASTERN PART OF THE COUNTRY. AND WE'RE LOOKING AT THE ABOVE NORMAL TEMPERATURES  AS WE GET OVER INTO THE SOUTHWESTERN UNITED STATES AND THEN AS WE GET INTO YOUR  PRECIPITATION WE ARE LOOKING AT ABOVE NORMAL PRECIPITATION GREAT LAKES DOWN INTO PARTS OF  THE OHIO AND TENNESSEE VALLEYS INTO THE NORTHEAST. ALSO IN THE NORTHWEST THE DRY SPOTS ARE  EXPECTED TO BE IN THE SOUTHEASTERN UNITED STATES AND IN MUCH OF THE SOUTHWESTERN UNITED  STATES AS WELL. THAT'S A LOOK AT YOUR NATIONAL FORECAST. NOW LET'S CHECK OUT THE WEATHER  WHERE YOU LIVE. CENTRALIA WASHINGTON. RAIN IS LIKELY FOR YOU TODAY WITH A HIGH OF 52 DEGREES.  PARK RIVER NORTH DAKOTA PARTLY CLOUDY AND COLD WITH A HIGH OF 8 DEGREES. AND PARIS  TENNESSEE SUNNY AND COOLER WITH A HIGH OF 39. 

TEASE
WHEN WE COME BACK, MACHINERY PETE ROLLS OUT HIS Q-4 EQUIPMENT PRICE  TRENDS. INFO BUYERS AND SELLERS WON'T WANT TO MISS. AND LATER, TWO CENTURIES OF WORK ON THIS PENNSYLVANIA FARM HASN'T  DAMPENED THIS FAMILIES PASSION FOR INNOVATION.

MACHINERY PETE
"MACHINERY PETE IS BROUGHT TO YOU BY JOHN DEERE…WHERE CAN YOU FIND THE MOST  COMPREHENSIVE INVENTORY OF JOHN DEERE CERTIFIED PRE-OWNED TRACTORS, COMBINES AND  SPRAYERS?  MACHINE FINDER-DOT-COM … SOMETIMES THE BEST NEW ADDITION TO YOUR FLEET ISN'T  NEW!"  MACHINERY PETE IS ALWAYS LOOKING FOR PRICE TRENDS IN THE EQUIPMENT  MARKET.  TODAY, HE'S LOOKING BACK AT FOURTH QUARTER SALES. GREG. SO WHAT'S UP WITH USED FARM EQUIPMENT VALUES. WELL I ANSWER THAT QUESTION EVERY QUARTER IN  OUR MACHINERY PETE USED VALUES INDEX REPORT. NOW HERE'S A LOOK AT OUR RECENTLY RELEASED  FOURTH QUARTER REPORT. AND THIS IS THE OVERALL EQUIPMENT INDEX. COVERING ALL TYPES OF USED  FARM EQUIPMENT. NOW I'VE BEEN PUTTING THIS REPORT OUT FOR SEVEN YEARS AND IT'S BASED ON ALL  THE AUCTION SALE PRICE DATA WE COMPILE AND THE INDEX IS BASED ON A SIMPLE 1 TO 10 RATING  SCALE WITH SIX POINT ZERO BEING WHAT I'VE ALWAYS CONSIDERED STABLE SLASH NORMAL USE VALUES.  NOW YOU CAN SEE WE'VE HAD SOME SOME WILD SWINGS OVER THE YEARS RATCHETING UP TO AN ALL  TIME HIGH LATE 2007 ALL THE WAY THROUGH EARLY 13 AND THEN FALLING LIKE A ROCK. USED VALUES  DROPPING LATE 13 THROUGH 14 AND 15. BUT NOTICE NOW IN THE GRAPH FROM THE START OF 2016 RIGHT  TILL NOW WE'VE LEVELED OFF AND IN FACT IN THE FOURTH QUARTER 2017 WE JUMPED UP A LITTLE BIT FROM  AN INDEX RATING OF SIX POINT FIVE TO SIX POINT SEVEN. NOW WHAT WAS DRIVING THAT. WELL I THINK  NUMBER ONE YIELDS CAME IN BETTER THAN WERE EXPECTED OVER MUCH OF THE U.S. THAT WAS  INCREASING OPTIMISM. AND NUMBER TWO WE HAVE TO CONSIDER NOW THAT IT'S BEEN ALMOST FIVE  YEARS THAT WE'VE HAD THESE LOWER COMMODITY PRICES AND TOUGH PROFIT PRESSURE AND AT SOME  POINT YOU KNOW IF YOU AREN'T BUYING NEW YOU STILL GOT TO DO WHAT YOU GOT TO DO YOU NEED THE  BEST QUALITY USED EQUIPMENT. NOW IT'S NOT JUST THE AUCTION PRICES WE'RE SEEING VERY STRONG ON  GOOD CONDITION EQUIPMENT. WE'VE ALSO SEEN A BIG SPIKE IN SEARCH TRAFFIC TO OUR MACHINERY  PETE DOT COM WEBSITE THE COUPON LISTINGS. IN FACT HIGH HORSEPOWER TRACTORS IN THE FOURTH  QUARTER SEARCH TRAFFIC UP 67 PERCENT VERSUS THIRD QUARTER COMBINES UP 62 PERCENT AND  PLANTER'S UP 106 PERCENT IN THE FOURTH QUARTER. 

TEASE
WHEN WE COME BACK ONE OF THE OLDEST FARMS IN THE COUNTRY IS NOW A  LEADING IN INNOVATION. STAY WITH US.

IN THE COUNTRY
IN THE COUNTRY - SPONSORED BY KUBOTA.  TRACTORS, HAY TOOLS, UTILILTY VEHICLES, MOWERS AND  MORE.  VISIT KUBOTA.COM TODAY. BEFORE THE U.S. EVEN DECLARED ITS INDEPENDENCE THIS FARM FAMILY WAS  ALREADY IN BUSINESS.TODAY ITS BEING RECOGNIZED AS THE 2018 INNOVATIVE DAIRY FARM OF THE  YEAR. AT FIRST GLANCE... OR FIRST FEEDING...SCHRACK FAMILY FARM IN LOGANTON PENNSYLVANIA  APPEARS TO BE THE TYPICAL DAIRY. MILKING ABOUT A THOUSAND COWS--AND FARMING 25-HUNDRED ACRES IN THE  MIDDLE OF THE STATE. THE PARLOR THAT WE WERE IN WERE BUILT IN THE 50S AND WE WERE MILKING TWO AND A HALF TIMES A  DAY IN A DOUBLE NINE AND WE EITHER NEEDED TO GET OUT OR GET BIGGER.  A FAMILY RUN OPERATION THAT EVEN PRE-DATES THE BIRTH OF THE NATION.   WE'RE PART OF A FAMILY FARM THAT DATES BACK TO 1773.  WITH ROOTS THAT DEEP, IT'S TAKEN A COMMITMENT TO INNOVATION AND SUSTAINABILITY TO KEEP THE PARLOR PUMPING. FROM INSTALLING A DIGESTER AND RUNNING A 200 KILOWATT GENERATOR...IN  2006. THIS IS BASICALLY AN EXTENSION OF THE COW'S STOMACH..  WE PRODUCE ABOUT 100,000 CUBIC FEET OF GAS A DAY THAT'S RUN THROUGH THE ENGINE AND TURNED  INTO 3-4 KW OF ELECTRICITY. PRODUCING ABOUT 100-THOUSAND DOLLARS WORTH OF ELECTRICITY A YEAR. IT  PROVIDES HEAT FOR WATER AND DRYING OFFSETTING PROPANE COSTS...AND  REDUCING GREENHOUSE GASES. THE POWER THAT WE PRODUCE HERE EXCEEDS OUR TOTAL POWER REQUIREMENTS AND PROBABLY 25  PERCENT ABOVE THAT.   IT ALSO HELPS FEED THIS...THE SCHRACK FAMILY FARM FIELDS. WE DID ALL THE THINGS WE'RE DOING TODAY FOR THE WRONG REASONS.  THEY STARTED NO TILL IN THE EARLY 70'S TO AVOID PICKING STONES--SHALLOW  ROCKY SOILS BROUGHT STONES TO SURFACE ON EVERY TILLAGE PASS. BUT IT WASN'T UNTIL YEARS LATER THAT WE FOUND OUT THE REAL ADVANTAGES IN THE SOIL STRUCTURE AND  THE LACK OF EROSION AND THAT'S THE SUSTAINABILITY THAT COMES ALONG WITH IT WAS NOTILL.   LATELY IT'S BEEN COVER CROPS...HELPING FEED THEIR SOIL. THE KEY TO HEALTHY SOILS IS. COVER CROPS NO TILL NOT DISTURBING THE SOIL AND BASICALLY MIMICKING  NATURE.   WHEN YOU MIMIC NATURE. NATURE HAS A SOIL COVERED ALL THE TIME AND HAS SOMETHING GROWING  ALL THE TIME AND THAT'S WHY WE TRY TO DO.   A NEAR 40 YEAR COMMITMENT CONTINUES TO PAY OFF ABOVE AND BELOW  GROUND. WATER INFILTRATION RATES ARE HIGHER, NUTRIENTS AND SEDIMENTS  DON'T WASH OUT OR RUN OFF... THE BENEFITS LIE IN THE FACT THAT WE'RE KEEPING OUR SOILS HERE AND WE'RE NOT ONLY KEEPING  OURSELVES HERE BUT WE'RE ACTUALLY ADDING TO OUR SOILS.  AN ACCOMPLISHMENT 245 YEARS IN THE MAKING AS THIS LEGACY OF  INNOVATION SHAPES THE FUTURE FOR GENERATIONS TO COME. WHEN I LOOK AT OUR FAMILY PHOTOS AND SEE THE NEXT GENERATION AND THE GENERATION AFTER THAT  COMING. IT'S VERY EXCITING FOR ME  CONGRATULATIONS TO THE SCHRACK FAMILY FARM, THE 2018 INNOVATIVE DAIRY  FARM OF THE YEAR.>

CLOSE
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.  FOR ALL OF US AT AGDAY. I'M CLINTON GRIFFITHS. HAVE A GREAT DAY. AGDAY - BROUGHT TO YOU BY RAM COMMERCIAL - AMERICA'S LONGEST-LASTING HEAVY DUTY  PICKUPS.

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close